Joyner Companys income statement for Year 2 follows:

Sales	$	706,000
Cost of goods sold		331,000
Gross margin		375,000
Selling and administrative expenses		216,000
Net operating income		159,000
Gain on sale of equipment		6,000
Income before taxes		165,000
Income taxes		49,500
Net income	$	115,500

Its balance sheet amounts at the end of Years 1 and 2 are as follows:

	Year 2		Year 1
Assets
Cash	$	42,500	$	72,900
Accounts receivable		270,000		129,000
Inventory		319,000		282,000
Prepaid expenses		9,500		19,000
Total current assets		641,000		502,900
Property, plant, and equipment		624,000		510,000
Less accumulated depreciation		165,600		130,800
Net property, plant, and equipment		458,400		379,200
Loan to Hymans Company		47,000		0
Total assets	$	1,146,400	$	882,100
Liabilities and Stockholders' Equity
Accounts payable	$	311,000	$	262,000
Accrued liabilities		44,000		51,000
Income taxes payable		85,100		80,100
Total current liabilities		440,100		393,100
Bonds payable		198,000		112,000
Total liabilities		638,100		505,100
Common stock		333,000		283,000
Retained earnings		175,300		94,000
Total stockholders' equity		508,300		377,000
Total liabilities and stockholders' equity	$	1,146,400	$	882,100

Equipment that had cost $30,600 and on which there was accumulated depreciation of $10,000 was sold during Year 2 for $26,600. The company declared and paid a cash dividend during Year 2. It did not retire any bonds or repurchase any of its own stock.

Required:
1.	Using the indirect method, compute the net cash for operating activities for Year 2. (Negative amount should be indicated by a minus sign.)

2.	Prepare a statement of cash flows for Year 2. (List any deduction in cash and cash outflows as negative amounts.)

3.	Compute the free cash flow for Year 2. (Negative amount should be indicated by a minus sign.)