Question 16.8: Free Cash Flow Omnicron Inc. reported the following on the c...
Omnicron Inc. reported the following on the company’s cash flow statement in 20Y8 and 20Y7:
20Y8 | 20Y7 | |
Net cash flow from operating activities | $ 140,000 | $120,000 |
Net cash flow used for investing activities | (120,000) | (80,000) |
Net cash flow used for financing activities | (20,000) | (32,000) |
Seventy-five percent of the net cash flow used for investing activities was used to replace existing capacity.
a. Determine Omnicron’s free cash flow.
b. Has Omnicron’s free cash flow improved or declined from 20Y7 to 20Y8?
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