Dillin Inc. reported the following on the company€™s statement of cash flows in 2014 and 2013:

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 2013 to2014?

Transcribed Image Text:

Net cash flow from operating activities Net cash flow used for investing activities Net cash flow used for financing activities 2014 2013 $476,000 455,000 (427,000) (378,000) (42,000) (58,800)