Foxboro Companys income statement for Year 2 follows:

Foxboro Company Income Statement
Sales	$	704,000
Cost of goods sold		68,000
Gross margin		636,000
Selling and administrative expenses		217,000
Net operating income		419,000
Gain on sale of equipment		7,000
Income before taxes		426,000
Income taxes		127,800
Net income	$	298,200

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

Foxboro Company Balance Sheet
	Year 2		Year 1
Assets
Cash	$	271,000	$	28,000
Accounts receivable		253,000		143,000
Inventory		319,000		285,000
Prepaid expenses		10,000		20,000
Total current assets		853,000		476,000
Plant and equipment		621,000		512,000
Accumulated depreciation		165,500		130,900
Net plant and equipment		455,500		381,100
Loan to Harker Company		45,000		0
Total assets	$	1,353,500	$	857,100
Liabilities and Stockholders' Equity
Accounts payable	$	311,000	$	251,000
Accrued liabilities		50,000		58,000
Income taxes payable		85,700		81,100
Total current liabilities		446,700		390,100
Bonds payable		202,000		101,000
Total liabilities		648,700		491,100
Common stock		345,000		271,000
Retained earnings		359,800		95,000
Total stockholders' equity		704,800		366,000
Total liabilities and stockholders' equity	$	1,353,500	$	857,100

Equipment that had cost $31,700 and on which there was accumulated depreciation of $11,100 was sold during Year 2 for $27,600. 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 for operating activities for Year 2. (Negative amount should be indicated by a minus sign. Omit the "$" sign in your response.)

Net cash (Click to select)provided byused in operating activities

$

2.	Prepare a statement of cash flows for Year 2. (Amounts to be deducted should be indicated with a minus sign. Omit the "$" sign in your response.)

Foxboro Company Statement of Cash Flows
Operating activities:
(Click to select)Net lossNet income		$
Adjustments to convert net income to cash basis:
(Click to select)Decrease in accrued liabilitiesIncrease in accrued liabilitiesIncrease in prepaid expensesIncrease in accounts receivableIncrease in inventoryIncrease in income taxes payableDecrease in accounts payableIncrease in accounts payableGain on sale of equipmentDecrease in inventoryDepreciationDecrease in prepaid expensesDecrease in accounts receivableDecrease in income taxes payable	$
(Click to select)Increase in accounts payableIncrease in accounts receivableDecrease in inventoryGain on sale of equipmentDecrease in accounts payableDecrease in accrued liabilitiesIncrease in accrued liabilitiesDecrease in income taxes payableIncrease in income taxes payableDecrease in accounts receivableDecrease in prepaid expensesIncrease in inventoryIncrease in prepaid expensesDepreciation
(Click to select)Increase in accounts payableDecrease in accrued liabilitiesGain on sale of equipmentIncrease in inventoryDecrease in income taxes payableDecrease in accounts receivableIncrease in income taxes payableDecrease in inventoryIncrease in accounts receivableDepreciationIncrease in prepaid expensesIncrease in accrued liabilitiesDecrease in prepaid expensesDecrease in accounts payable
(Click to select)Decrease in prepaid expensesIncrease in accounts payableDecrease in income taxes payableDecrease in accounts receivableIncrease in prepaid expensesGain on sale of equipmentIncrease in accrued liabilitiesIncrease in accounts receivableIncrease in inventoryDepreciationDecrease in accounts payableDecrease in accrued liabilitiesDecrease in inventoryIncrease in income taxes payable
(Click to select)Decrease in accounts receivableDecrease in accrued liabilitiesIncrease in income taxes payableDecrease in accounts payableIncrease in accrued liabilitiesIncrease in prepaid expensesIncrease in accounts payableIncrease in inventoryDecrease in inventoryDecrease in income taxes payableIncrease in accounts receivableDecrease in prepaid expensesGain on sale of equipmentDepreciation
(Click to select)Decrease in prepaid expensesIncrease in inventoryDepreciationIncrease in accrued liabilitiesGain on sale of equipmentIncrease in accounts receivableDecrease in accounts receivableIncrease in income taxes payableDecrease in accounts payableIncrease in accounts payableDecrease in income taxes payableDecrease in inventoryIncrease in prepaid expensesDecrease in accrued liabilities
(Click to select)Decrease in prepaid expensesIncrease in accrued liabilitiesGain on sale of equipmentDecrease in accounts receivableDepreciationIncrease in inventoryDecrease in accounts payableIncrease in income taxes payableIncrease in accounts receivableDecrease in inventoryIncrease in prepaid expensesDecrease in accrued liabilitiesDecrease in income taxes payableIncrease in accounts payable
(Click to select)Decrease in income taxes payableIncrease in income taxes payableGain on sale of equipmentIncrease in accounts receivableDecrease in accrued liabilitiesIncrease in prepaid expensesDepreciationIncrease in inventoryIncrease in accounts payableDecrease in accounts payableDecrease in accounts receivableIncrease in accrued liabilitiesDecrease in prepaid expensesDecrease in inventory
Net cash (Click to select)provided byused in operating activities
Investing activities:
(Click to select)Decrease in prepaid expensesDecrease in inventoryProceeds from sale of equipmentIncrease in prepaid expensesDecrease in accounts receivableCash dividendsAdditions to plant and equipmentDepreciationIncrease in accounts payableDecrease in accounts payableIncrease in inventoryIncrease in accounts receivableLoan to Harker CompanyIssuance of bonds payable
(Click to select)Decrease in accounts receivableIncrease in prepaid expensesDepreciationDecrease in accounts payableDecrease in prepaid expensesProceeds from sale of equipmentIncrease in accounts payableLoan to Harker CompanyIssuance of bonds payableIncrease in inventoryIncrease in accounts receivableDecrease in inventoryCash dividendsAdditions to plant and equipment
(Click to select)Increase in prepaid expensesDecrease in accounts receivableDecrease in inventoryIncrease in accounts payableDepreciationAdditions to plant and equipmentDecrease in prepaid expensesIncrease in inventoryCash dividendsProceeds from sale of equipmentDecrease in accounts payableIncrease in accounts receivableIssuance of bonds payableLoan to Harker Company
Net cash (Click to select)provided byused in investing activities
Financing activities:
(Click to select)Decrease in accounts receivableIncrease in prepaid expensesAdditions to plant and equipmentCash dividendsIssuance of common stockDecrease in accounts payableLoan to Harker CompanyIncrease in accounts payableIncrease in inventoryProceeds from sale of equipmentDecrease in inventoryDecrease in prepaid expensesIssuance of bonds payableIncrease in accounts receivable
(Click to select)Increase in accounts payableDecrease in inventoryIssuance of common stockCash dividendsLoan to Harker CompanyDecrease in prepaid expensesAdditions to plant and equipmentProceeds from sale of equipmentDecrease in accounts payableIncrease in inventoryDecrease in accounts receivableIncrease in prepaid expensesIssuance of bonds payableIncrease in accounts receivable
(Click to select)Increase in accounts payableCash dividendsIncrease in inventoryDecrease in prepaid expensesIssuance of bonds payableDecrease in inventoryAdditions to plant and equipmentIssuance of common stockDecrease in accounts payableDecrease in accounts receivableIncrease in accounts receivableLoan to Harker CompanyIncrease in prepaid expensesProceeds from sale of equipment
Net cash (Click to select)used inprovided by financing activities
(Click to select)Net increase in cashNet decrease in cash
Cash balance, beginning of year
Cash balance, end of year		$

3.	Compute the free cash flow for Year 2. (Negative amount should be indicated by a minus sign. Omit the "$" sign in your response.)

Free cash flow

$