Joyner Companys income statement for Year 2 follows:

Sales	$	705,000
Cost of goods sold		58,000
Gross margin		647,000
Selling and administrative expenses		217,000
Net operating income		430,000
Gain on sale of equipment		6,000
Income before taxes		436,000
Income taxes		174,400
Net income	$	261,600

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

	Year 2		Year 1
Assets
Cash	$	205,000	$	85,700
Accounts receivable		259,000		141,000
Inventory		319,000		275,000
Prepaid expenses		9,500		19,000
Total current assets		792,500		520,700
Property, plant, and equipment		627,000		508,000
Less accumulated depreciation		166,800		131,700
Net property, plant, and equipment		460,200		376,300
Loan to Hymans Company		50,000		0
Total assets	$	1,302,700	$	897,000
Liabilities and Stockholders' Equity
Accounts payable	$	314,000	$	266,000
Accrued liabilities		46,000		56,000
Income taxes payable		85,200		82,000
Total current liabilities		445,200		404,000
Bonds payable		207,000		117,000
Total liabilities		652,200		521,000
Common stock		332,000		286,000
Retained earnings		318,500		90,000
Total stockholders' equity		650,500		376,000
Total liabilities and stockholders' equity	$	1,302,700	$	897,000

Equipment that had cost $31,100 and on which there was accumulated depreciation of $10,200 was sold during Year 2 for $26,900. 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.)