Joyner Companys income statement for Year 2 follows:

Sales	$	708,000
Cost of goods sold		352,000
Gross margin		356,000
Selling and administrative expenses		216,000
Net operating income		140,000
Gain on sale of equipment		6,000
Income before taxes		146,000
Income taxes		58,400
Net income	$	87,600

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

	Year 2		Year 1
Assets
Cash	$	39,000	$	91,800
Accounts receivable		259,000		138,000
Inventory		319,000		278,000
Prepaid expenses		9,000		18,000
Total current assets		626,000		525,800
Property, plant, and equipment		621,000		506,000
Less accumulated depreciation		166,700		131,700
Net property, plant, and equipment		454,300		374,300
Loan to Hymans Company		41,000		0
Total assets	$	1,121,300	$	900,100
Liabilities and Stockholders' Equity
Accounts payable	$	317,000	$	270,000
Accrued liabilities		46,000		57,000
Income taxes payable		85,500		80,100
Total current liabilities		448,500		407,100
Bonds payable		192,000		108,000
Total liabilities		640,500		515,100
Common stock		330,000		288,000
Retained earnings		150,800		97,000
Total stockholders' equity		480,800		385,000
Total liabilities and stockholders' equity	$	1,121,300	$	900,100

Equipment that had cost $31,000 and on which there was accumulated depreciation of $11,200 was sold during Year 2 for $25,800. 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.) Net cash provided by operating activities 2. Prepare a statement of cash flows for Year 2. (List any deduction in cash and cash outflows as negative amounts.) Joyner Company Statement of Cash Flows - Indirect Method For Year 2 Operating activities: Net income Adjustments to convert net income to cash basis: Depreciation Gain on sale of equipment Increase in accounts receivable Increase in inventory Decrease in prepaid expenses Increase in accounts payable Decrease in accrued liabilities Increase in income taxes payable 0 0 Investing activities: Proceeds from sale of equipment Loan to Hymans Company 0 Financing activities: Issuance of bonds payable Issuance of common stock 0 0 Beginning cash and cash equivalents Ending cash and cash equivalents $0 3. Compute the free cash flow for Year 2. (Negative amount should be indicated by a minus sign.) Free cash flow