Question Content Area

Free cash flow

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

Line Item Description	20Y2	20Y1
Net cash flows from operating activities	$448,750	$434,000
Net cash flows used for investing activities	(425,000)	(376,000)
Net cash flows used for financing activities	(45,000)	(55,000)

Of the net cash flows used for investing activities, 75% was used for the purchase of property, plant, and equipment.

a. Determine Dillin's free cash flow for both years.

Line Item Description	20Y2	20Y1
Free cash flow	fill in the blank 1 of 2$	fill in the blank 2 of 2$

b. Has Dillin's free cash flow improved or declined from 20Y1 to 20Y2?

DeclinedImproved