Joyner Companys income statement for Year 2 follows:

Sales	$	717,000
Cost of goods sold		290,000
Gross margin		427,000
Selling and administrative expenses		217,000
Net operating income		210,000
Nonoperating items:
Gain on sale of equipment		8,000
Income before taxes		218,000
Income taxes		65,400
Net income	$	152,600

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

	Year 2			Year 1
Assets
Cash	$	70,700		$	93,200
Accounts receivable		260,000			119,000
Inventory		320,000			280,000
Prepaid expenses		8,500			17,000
Total current assets		659,200			509,200
Property, plant, and equipment		636,000			512,000
Less accumulated depreciation		165,000			131,900
Net property, plant, and equipment		471,000			380,100
Loan to Hymans Company		49,000			0
Total assets	$	1,179,200		$	889,300
Liabilities and Stockholders' Equity
Accounts payable	$	313,000		$	263,000
Accrued liabilities		42,000			57,000
Income taxes payable		84,700			81,300
Total current liabilities		439,700			401,300
Bonds payable		197,000			120,000
Total liabilities		636,700			521,300
Common stock		331,000			277,000
Retained earnings		211,500			91,000
Total stockholders' equity		542,500			368,000
Total liabilities and stockholders' equity	$	1,179,200		$	889,300

Equipment that had cost $31,200 and on which there was accumulated depreciation of $10,200 was sold during Year 2 for $29,000. 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 provided by/used in operating activities for Year 2.

2. Prepare a statement of cash flows for Year 2.

3. Compute the free cash flow for Year 2.