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Data Below for a Local Clothing Boutique Year Free Cash Flow Capital Spending Change in Net Working Capital Operating Cash Flow 2018 $500 $200 $750
Data Below for a Local Clothing Boutique
Year | Free Cash Flow | Capital Spending | Change in Net Working Capital | Operating Cash Flow |
---|---|---|---|---|
2018 | $500 | $200 | $750 | |
2019 | $100 | $100 | $1,000 |
A) Compute free cash flow for 2018 and 2019.
B) In what year did shareholders and creditors have more money available to them? Why is this?
C) In what year did this boutique open up a new shop (made a large investment in fixed assets)? Why?
D) In what year did this boutique have the largest cash flow from their normal business of producing and selling clothes? Why?
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