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Q2. Use the following information to calculate the free cash flow for 2015 and 2016. Determine if the change indicates a favorable or unfavorable trend.

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Q2. Use the following information to calculate the free cash flow for 2015 and 2016. Determine if the change indicates a favorable or unfavorable trend. Sixty percent of the net cash flow used for investing activities was used to replace existing capacity. Net cash flow from operating activities Net cash flow used for investing activities Net cash flow used for financing activities 2016 2015 $ 97,500 $100,350 (110,000) (125,000) m(15,000) (20,000)

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