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Determine mcmahon free cash flow for both years

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Reference no: EM132755360

Problem - Free cash flow - McMahon Inc. reported the following on the company's statement of cash flows in 20Y8 and 20Y7:

 

20Y8

20Y7

Net cash flow from operating activities

$294,000 

$280,000 

Net cash flow used for investing activities

(224,000)

(252,000)

Net cash flow used for financing activities

(63,000)

(42,000)

Seventy percent of the net cash flow used for investing activities was for the purchase of property, plant, and equipment.

Required -

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

b. Has McMahon's free cash flow improved or declined from 20Y7 to 20Y8?

Reference no: EM132755360

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