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