Free cash flow Obj. 6 Dillin Inc. reported the following on the companys statement of cash flows

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Free cash flow Obj. 6 Dillin Inc. reported the following on the company’s statement of cash flows in 20Y2 and 20Y1:

20Y2 20Y1 Net cash flow from operating activities $ 476,000 $ 455,000 Net cash flow used for investing activities (427,000) (378,000)
Net cash flow used for financing activities (42,000) (58,800)

Eighty percent of the net cash flow used for investing activities was used for the purchase of property, plant, and equipment.

a. Determine Dillin’s free cash flow for both years.

b. Has Dillin’s free cash flow improved or declined from 20Y1 to 20Y2?
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Corporate Financial Accounting

ISBN: 9781337398176

15th Edition

Authors: Carl Warren, Jefferson Jones

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