In Problem 3-14, you were asked to prepare a statement of cash flows for Pamplin Inc. Pamplin's financial statements are provided again on the next page. Using this information, compute the firm's free cash flows and the financing cash flows, and interpret your results.

Pamplin, Inc. Balance Sheet at 12/31/2014 and 12/31/2015

Pamplin, Inc. Income Statement for Years Ended 12/31/2014 and 12/31/2015

ASSETS 2014 $ 200 450 2015 150 425 Cash Accounts receivable Inventory Current assets Plant and equipment $1200 $2,200 (1,000) 1200 $2,600 (1,200) $1400 Less accumulated depreciation Net plant and equipment Total assets LIABILITIES AND OWNERS' EQUITY Accounts payable Notes payable-current (9%) Current liabilities Long-term debt Owners' equity 200 150 150 $ 300 $600 $ 900 900 800 $1,700 2,600 Common stock Retained earnings Total owners' equity Total liabilities and owners' equity $1,600 2,400 2014 1,200 700 500 2015 $1,450 850 $600 Sales Cost of goods sold Gross profit Selling, general, and administrative expenses Depreciation expense Operating income Interest expense Net income before taxes Taxes (40%) Net income 240 360 64 296 118 220 250 200 250 200