Joyner Companys income statement for Year 2 follows:

Sales	$	709,000
Cost of goods sold		124,000
Gross margin		585,000
Selling and administrative expenses		217,000
Net operating income		368,000
Nonoperating items:
Gain on sale of equipment		9,000
Income before taxes		377,000
Income taxes		150,800
Net income	$	226,200

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

	Year 2			Year 1
Assets
Cash	$	189,500		$	55,200
Accounts receivable		258,000			141,000
Inventory		318,000			290,000
Prepaid expenses		9,000			18,000
Total current assets		774,500			504,200
Property, plant, and equipment		636,000			503,000
Less accumulated depreciation		165,500			130,700
Net property, plant, and equipment		470,500			372,300
Loan to Hymans Company		45,000			0
Total assets	$	1,290,000		$	876,500
Liabilities and Stockholders' Equity
Accounts payable	$	314,000		$	268,000
Accrued liabilities		46,000			51,000
Income taxes payable		85,400			81,500
Total current liabilities		445,400			400,500
Bonds payable		208,000			107,000
Total liabilities		653,400			507,500
Common stock		349,000			274,000
Retained earnings		287,600			95,000
Total stockholders' equity		636,600			369,000
Total liabilities and stockholders' equity	$	1,290,000		$	876,500

Equipment that had cost $30,800 and on which there was accumulated depreciation of $11,400 was sold during Year 2 for $28,400. 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 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.

Joyner Company Statement of Cash Flows-Indirect Method (partial) $ 0 Joyner Company Statement of Cash Flows For Year 2 Operating activities: Investing activities: Financing activities: Beginning cash and cash equivalents Ending cash and cash equivalents