Joyner Companys income statement for Year 2 follows:

Sales	$	716,000
Cost of goods sold		303,000
Gross margin		413,000
Selling and administrative expenses		216,000
Net operating income		197,000
Gain on sale of equipment		6,000
Income before taxes		203,000
Income taxes		81,200
Net income	$	121,800

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

	Year 2		Year 1
Assets
Cash	$	83,000	$	104,500
Accounts receivable		269,000		113,000
Inventory		319,000		271,000
Prepaid expenses		8,000		16,000
Total current assets		679,000		504,500
Property, plant, and equipment		624,000		519,000
Less accumulated depreciation		165,900		131,700
Net property, plant, and equipment		458,100		387,300
Loan to Hymans Company		43,000		0
Total assets	$	1,180,100	$	891,800
Liabilities and Stockholders' Equity
Accounts payable	$	315,000	$	264,000
Accrued liabilities		49,000		57,000
Income taxes payable		85,600		81,800
Total current liabilities		449,600		402,800
Bonds payable		195,000		105,000
Total liabilities		644,600		507,800
Common stock		348,000		288,000
Retained earnings		187,500		96,000
Total stockholders' equity		535,500		384,000
Total liabilities and stockholders' equity	$	1,180,100	$	891,800

Equipment that had cost $30,600 and on which there was accumulated depreciation of $11,200 was sold during Year 2 for $25,400. 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.)