Question Content Area

Free cash flow

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

	20Y2		20Y1
Net cash flow from operating activities	$474,200		$455,800
Net cash flow used for investing activities	(429,000)		(376,000)
Net cash flow used for financing activities	(45,000)		(57,000)

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.

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

Free cash flow Dillin Inc. reported the following on the company's statement of cash flows in 20Y2 and 20Y1 : Eighty percent of the net cash flow used for investing activities was used for the purchase of property, plant, and equipment. a. Determine Dillin's free cash flow for both years. b. Has Dillin's free cash flow improved or declined from 20Y1 to 20Y2