Will give thumbs up if correct:

Joyner Companys income statement for Year 2 follows:

Sales	$ 715,000
Cost of goods sold	182,000
Gross margin	533,000
Selling and administrative expenses	150,400
Net operating income	382,600
Nonoperating items:
Gain on sale of equipment	6,000
Income before taxes	388,600
Income taxes	116,580
Net income	$ 272,020

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

	Year 2	Year 1
Assets
Cash	$ 268,020	$ 103,300
Accounts receivable	224,000	114,000
Inventory	319,000	272,000
Prepaid expenses	8,500	17,000
Total current assets	819,520	506,300
Property, plant, and equipment	620,000	517,000
Less accumulated depreciation	166,100	130,900
Net property, plant, and equipment	453,900	386,100
Loan to Hymans Company	45,000	0
Total assets	$ 1,318,420	$ 892,400
Liabilities and Stockholders' Equity
Accounts payable	$ 315,000	$ 266,000
Accrued liabilities	47,000	52,000
Income taxes payable	84,400	80,400
Total current liabilities	446,400	398,400
Bonds payable	193,000	119,000
Total liabilities	639,400	517,400
Common stock	345,000	282,000
Retained earnings	334,020	93,000
Total stockholders' equity	679,020	375,000
Total liabilities and stockholders' equity	$ 1,318,420	$ 892,400

Equipment that had cost $31,700 and on which there was accumulated depreciation of $11,000 was sold during Year 2 for $26,700. 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.