Free cash flow Dillin Inc. reported the following on the company's statement of cash flows in 20Y2 and 20Y1: Free cash flow 20Y2 Net cash flow from operating activities $474,800 Net cash flow used for investing activities (426,000) Net cash flow used for financing activities (40,000) 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. 20Y2 20Y1 20Y1 $455,400 (378,000) (57,000) b. Has Dillin's free cash flow improved or declined from 20Y1 to 20Y2?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

Please help me with show all calculation thanku 

Free cash flow
Dillin Inc. reported the following on the company's statement of cash flows in 20Y2 and 20Y1:
20Y2
20Y1
Net cash flow from operating activities
$474,800
$455,400
Net cash flow used for investing activities
(426,000)
(378,000)
Net cash flow used for financing activities
(40,000)
(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 Dillin's free cash flow for both years.
Free cash flow
20Y2
$
20Y1
b. Has Dillin's free cash flow improved or declined from 20Y1 to 20Y2?
Transcribed Image Text:Free cash flow Dillin Inc. reported the following on the company's statement of cash flows in 20Y2 and 20Y1: 20Y2 20Y1 Net cash flow from operating activities $474,800 $455,400 Net cash flow used for investing activities (426,000) (378,000) Net cash flow used for financing activities (40,000) (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 Dillin's free cash flow for both years. Free cash flow 20Y2 $ 20Y1 b. Has Dillin's free cash flow improved or declined from 20Y1 to 20Y2?
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Cash Flow Statement Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education