7:30AAFree Cash FlowNet cash flows from operating activitiesNet cash flows used for investing activitiesNet cash flows used for financing activitiesGarfunkel Inc. reported the following on the company'sstatement of cash flows in Year 2 and Year 1:Year 2v2.cengagenow.comYear 1Declined<$Eighty percent of the net cash flows used for investingactivities was used to replace existing capacity.a. Determine Garfunkel's free cash flow for both years.XYear 2X$623,000(559,000)(55,000)Year 1ĤLTE$596,000(495,000)(77,000)54b. Has Garfunkel's free cash flow improved or declinedfrom Year 1 to Year 2?

Cash flows from operating activities: It is a section of the Statement of cash flow that explains…

Garfunkel Inc. reported the following on the company's statement of cash flows in Year 2 and Year 1: Net cash flows from operating activities Net cash flows used for investing activities Net cash flows used for financing activities Year 2 Year 1 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. $ Declined Year 2 X $623,000 (559,000) (55,000) X Year 1 $596,000 (495,000) (77,000) b. Has Garfunkel's free cash flow improved or declined from Year 1 to Year 2?

Garfunkel Inc. reported the following on the company's statement of cash flows in Year 2 and Year 1: Net cash flows from operating activities Net cash flows used for investing activities Net cash flows used for financing activities Year 2 Year 1 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. $ Declined Year 2 X $623,000 (559,000) (55,000) X Year 1 $596,000 (495,000) (77,000) b. Has Garfunkel's free cash flow improved or declined from Year 1 to Year 2?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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