Burkhalter Inc. reported the following on the companys statement of cash flows in Year 2 and Year

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Burkhalter Inc. reported the following on the company’s statement of cash flows in Year 2 and Year 1:

Seventy percent of the net cash flows used for investing activities was used to replace existing capacity.

a. Determine Burkhalter’s free cash flow for both years.
b. Has Burkhalter’s free cash flow improved or declined from Year 1 to Year 2?

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Financial Accounting

ISBN: 9781337913102

16th Edition

Authors: Carl S. Warren, Christine Jonick, Jennifer Schneider

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