Free Cash Flow

Garfunkel Inc. reported the following on the company's statement of cash flows in Year 2 and Year 1:

Year 2 Year 1

Net cash flows from operating activities $623,000 $596,000

Net cash flows used for investing activities (559,000) (495,000)

Net cash flows used for financing activities (55,000) (77,000)

Eighty percent of the net cash flows used for investing activities was used to replace existing capacity.

a. Determine Garfunkel's free cash flow for both years.

Year 2 $fill in the blank 1

Year 1 $fill in the blank 2

b. Has Garfunkel's free cash flow improved or declined from Year 1 to Year 2?

Free Cash Flow Garfunkel Inc. reported the following on the company's statement of cash flows in Year 2 and Year 1: Year 2 Year 1 Net cash flows from operating activities $623,000 $596,000 Net cash flows used for investing activities (559,000) (495,000) Net cash flows used for financing activities (55,000) (77,000) Eighty percent of the net cash flows used for investing activities was used to replace existing capacity. a. Determine Garfunkel's free cash flow for both years. Year 2 Year 1 b. Has Garfunkel's free cash flow improved or declined from Year 1 to Year 2