Question
Please use the selected financial data for The Daily Grind, a Jersey City coffee shop chain, to answer the following questions: Year Free Cash Flow
Please use the selected financial data for The Daily Grind, a Jersey City coffee shop chain, to answer the following questions:
Year | Free Cash Flow | Capital spending | Change in net working capital | Operating Cash Flow |
2019 |
| $200 | $100 | $1,000 |
2020 |
| $600 | $200 | $950 |
4a. Please compute free cash flow for 2019 and 2020.
4b. In what year did shareholders and creditors have more money available to them? Why?
4c. In what year did The Daily Grind open up a new shop (made a large investment in fixed assets)? Why?
4d. In what year did The Daily Grind have the largest cash flow from their normal business of producing and selling coffee? Why?
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