Joyner Companys income statement for Year 2 follows:

Sales	$ 713,000
Cost of goods sold	251,000
Gross margin	462,000
Selling and administrative expenses	150,600
Net operating income	311,400
Nonoperating items:
Gain on sale of equipment	9,000
Income before taxes	320,400
Income taxes	96,120
Net income	$ 224,280

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

	Year 2	Year 1
Assets
Cash	$ 210,480	$ 89,700
Accounts receivable	229,000	132,000
Inventory	318,000	280,000
Prepaid expenses	9,500	19,000
Total current assets	766,980	520,700
Property, plant, and equipment	632,000	503,000
Less accumulated depreciation	167,000	131,500
Net property, plant, and equipment	465,000	371,500
Loan to Hymans Company	47,000	0
Total assets	$ 1,278,980	$ 892,200
Liabilities and Stockholders' Equity
Accounts payable	$ 319,000	$ 254,000
Accrued liabilities	41,000	58,000
Income taxes payable	85,600	80,200
Total current liabilities	445,600	392,200
Bonds payable	206,000	112,000
Total liabilities	651,600	504,200
Common stock	339,000	289,000
Retained earnings	288,380	99,000
Total stockholders' equity	627,380	388,000
Total liabilities and stockholders' equity	$ 1,278,980	$ 892,200

Equipment that had cost $31,900 and on which there was accumulated depreciation of $12,000 was sold during Year 2 for $28,900. 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.

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Required 1 Required 2 Required 3 Using the indirect method, compute the net cash provided by/used in operating activities for Year 2. (List any deduction in cash outflows as negative amounts.) Joyner Company Statement of Cash Flows-Indirect Method (partial) Required 1 Required 2 > Required 1 Required 2 Required 3 Using the indirect method, compute the net cash provided by/used in operating activities for Year 2. (List any deduction in cash outflows as negative amounts.) Joyner Company Statement of Cash Flows-Indirect Method (partial) Required 1 Required 2 >