Has free cash flow improved or declined

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Reference no: EM132795707

XYZ Company reported the following on their statement of cash flows in 2016 and 2017:

                                                                                    2016                     2017

Net Cash flow from operating activities               $360,000           $400,000

Net Cash flow used for investing activities           (287,000)             (276,000)

Net cash flow used for financing activities                (54,000)                 (46,000)

Eighty percent of the net cash flow used for investing activities was used to replace existing capacity.

Instructions:

Problem a) Calculate their free cash flow for 2016 and 2017.

Problem b) Has their free cash flow improved or declined from 2016 to 2017?

Reference no: EM132795707

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