For the years ended December 31, 2015, and 2014, Janelle Corporation reported the following selected information in its financial statements: Instructions
a. Calculate free cash flow for 2015 and 2014.
b. How is it possible that Janelle Corporation can have cash provided by operating activities of $400,000 for 2015 and only report profit of $154,000?
c. Comment on the changes in free cash flow from 2014 to 2015 and suggest how the company might improve its free cash flow in the future.

Question

For the years ended December 31, 2015, and 2014, Janelle Corporation reported the following selected information in its financial statements:  Instructions 
a. Calculate free cash flow for 2015 and 2014.
b. How is it possible that Janelle Corporation can have cash provided by operating activities of $400,000 for 2015 and only report profit of $154,000?
c. Comment on the changes in free cash flow from 2014 to 2015 and suggest how the company might improve its free cash flow in the future.

Quizplus · Accepted Answer

The Answer of For the years ended December 31, 2015, and 2014, Janelle Corporation reported the following selected information in its financial statements:  Instructions 
a. Calculate free cash flow for 2015 and 2014.
b. How is it possible that Janelle Corporation can have cash provided by operating activities of $400,000 for 2015 and only report profit of $154,000?
c. Comment on the changes in free cash flow from 2014 to 2015 and suggest how the company might improve its free cash flow in the future.

For the Years Ended December 31, 2015, and 2014, Janelle