1) Changes in Current Operating Assets and LiabilitiesIndirect Method

Mohammed Corporation's comparative balance sheet for current assets and liabilities was as follows:

	Dec. 31, 20Y2		Dec. 31, 20Y1
Accounts receivable	$18,700		$17,500
Inventory	72,900		73,600
Accounts payable	11,500		10,800
Dividends payable	22,000		23,000

Adjust net income of $103,000 for changes in operating assets and liabilities to arrive at net cash flow from operating activities.

2)

Dillin Inc. reported the following on the companys statement of cash flows in 20Y2 and 20Y1:

	20Y2		20Y1
Net cash flow from operating activities	$476,000		$455,000
Net cash flow used for investing activities	(427,000)		(378,000)
Net cash flow used for financing activities	(42,000)		(58,800)

Eighty percent of the net cash flow used for investing activities was used for the purchase of property, plant, and equipment.

a. Determine Dillins free cash flow for both years.

	20Y2		20Y1
Free cash flow	$fill in the blank 1		$fill in the blank 2

b. Has Dillins free cash flow improved or declined from 20Y1 to 20Y2?