Dillin Inc. reported the following on the company’s statement of cash flows in Year 2 and Year 1: Year 2 Year 1Net cash flow from operating activities $ 476,000 $ 455,000Net cash flow used for investing activities (427,000) (378,000)Net cash flow used for financing activities (42,000) (58,800)Eighty percent of the net cash flow used for investing activities was used to replace existing capacity.a. Determine Dillin’s free cash flow for both years.b. Has Dillin’s free cash flow improved or declined from Year 1 to Year 2?
Dillin Inc. reported the following on the company’s statement of
Year 2 Year 1
Net cash flow from operating activities $ 476,000 $ 455,000
Net cash flow used for investing activities (427,000) (378,000)
Net cash flow used for financing activities (42,000) (58,800)
Eighty percent of the net cash flow used for investing activities was used to replace existing capacity.
a. Determine Dillin’s
b. Has Dillin’s free cash flow improved or declined from Year 1 to Year 2?
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