Free cash flow OBJ. 4 McMahon Inc. reported the following on the company’s statement of cash flows in 2016 and 2015:

2016 2015 Net cash flow from operating activities $ 294,000 $ 280,000 Net cash flow used for investing activities (224,000) (252,000)

Net cash flow used for financing activities (63,000) (42,000)

Seventy percent of the net cash flow used for investing activities was used to replace existing capacity.

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

b. Has McMahon’s free cash flow improved or declined from 2015 to 2016?