Jain Corporation reported net cash provided by operating activities of $325,000, net cash used by investing activities of $250,000, and net cash provided by financing activities of $70,000. In addition, cash spent for net capital expenditures during the period was $200,000, and $25,000 of dividends were paid.
(a) Calculate Jain's free cash flow.
(b) Explain why free cash flow often provides better information than net cash provided by operating activities?