Joyner Companys income statement for Year 2 follows:

Sales	$	713,000
Cost of goods sold		305,000
Gross margin		408,000
Selling and administrative expenses		218,000
Net operating income		190,000
Nonoperating items:
Gain on sale of equipment		9,000
Income before taxes		199,000
Income taxes		79,600
Net income	$	119,400

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

	Year 2			Year 1
Assets
Cash and cash equivalents	$	63,800		$	84,300
Accounts receivable		266,000			117,000
Inventory		319,000			289,000
Prepaid expenses		11,000			22,000
Total current assets		659,800			512,300
Property, plant, and equipment		631,000			504,000
Less accumulated depreciation		166,600			131,500
Net property, plant, and equipment		464,400			372,500
Loan to Hymans Company		45,000			0
Total assets	$	1,169,200		$	884,800
Liabilities and Stockholders' Equity
Accounts payable	$	319,000		$	255,000
Accrued liabilities		42,000			60,000
Income taxes payable		84,300			81,800
Total current liabilities		445,300			396,800
Bonds payable		197,000			119,000
Total liabilities		642,300			515,800
Common stock		346,000			275,000
Retained earnings		180,900			94,000
Total stockholders' equity		526,900			369,000
Total liabilities and stockholders' equity	$	1,169,200		$	884,800

Equipment that had cost $30,700 and on which there was accumulated depreciation of $11,800 was sold during Year 2 for $27,900. 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 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.