Adjustments to Net Income-Indirect Method Kingston Corporation's accumulated depreciation equipment account increased by $7,900 while $5,100 of patent amortization was recognized between balance sheet dates. There were no purchases or sales of depreciable or intangible assets during the year. In addition, the income statement showed a gain of $6,000 from the sale of investments Reconcile a net income of $90,200 to net cash flow from operating activities. Changes in Current Operating Assets and Liabilities-Indirect Method Blue Circle Corporation's comparative balance sheet for current assets and liabilities was as follows: Dec. 31, 20Y2 $25,900 Dec. 31, 20Y1 $25,600 Accounts receivable 64,800 Inventory Accounts payable Dividends payable 14,100 65,500 13,800 17,000 16,000 Adjust net income of $77,100 for changes in operating assets and liabilities to arrive at net cash flow from operating activities. Free cash flow Dillin Inc. reported the following on the company's statement of cash flows in 20Y2 and 20Y1: 2042 2041 Net cash flow from operating activities $472,000 $451,000 Net cash flow used for investing activities (425,000) (375,000) Net cash flow used for financing activities (44,000) (55,000) 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. 2012 20Y1 Free cash flow $ b. Has Dillin's free cash flow improved or declined from 20Y1 to 20Y2? Declined