Question: Please use the selected financial data for The Daily Grind, a Jersey City coffee shop chain, to answer the following questions: Year Free Cash Flow

Please use the selected financial data for The Daily Grind, a Jersey City coffee shop chain, to answer the following questions:

Year

Free Cash Flow

Capital spending

Change in net working capital

Operating Cash Flow

2019

$200

$100

$1,000

2020

$600

$200

$950

4a. Please compute free cash flow for 2019 and 2020.

4b. In what year did shareholders and creditors have more money available to them? Why?

4c. In what year did The Daily Grind open up a new shop (made a large investment in fixed assets)? Why?

4d. In what year did The Daily Grind have the largest cash flow from their normal business of producing and selling coffee? Why?

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