Pillsberry Companys income statement for Year 2 follows:

Pillsberry Company Income Statement
Sales	$	710,000
Cost of goods sold		309,000
Gross margin		401,000
Selling and administrative expenses		217,000
Net operating income		184,000
Gain on sale of equipment		6,000
Income before taxes		190,000
Income taxes		76,000
Net income	$	114,000

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

Pillsberry Company Balance Sheet
	Year 2		Year 1
Assets
Cash	$	47,400	$	88,500
Accounts receivable		279,000		122,000
Inventory		318,000		273,000
Prepaid expenses		8,500		17,000
Total current assets		652,900		500,500
Plant and equipment		631,000		502,000
Accumulated depreciation		166,300		130,900
Net plant and equipment		464,700		371,100
Loan to Puffington Company		44,000
Total assets	$	1,161,600	$	871,600
Liabilities and Stockholders' equity
Accounts payable	$	318,000	$	253,000
Accrued liabilities		47,000		54,000
Income taxes payable		85,500		81,600
Total current liabilities		450,500		388,600
Bonds payable		209,000		108,000
Total liabilities		659,500		496,600
Common stock		332,000		286,000
Retained earnings		170,100		89,000
Total stockholders' equity		502,100		375,000
Total liabilities and stockholders' equity	$	1,161,600	$	871,600

Equipment that had cost $31,300 and on which there was accumulated depreciation of $11,100 was sold during Year 2 for $26,200. 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.(Negative amount should be indicated by a minus sign.)

2.	Prepare a statement of cash flows for Year 2. (Amounts to be deducted and negative amounts should be indicated with a minus sign.)

3.	Compute the free cash flow for Year 2. (Negative amount should be indicated by a minus sign.)