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.
Definitions:
Expert Demand Forecast
A projection or estimation of future demand for goods or services based on analyses conducted by experts in the field.
Forecasting Methods
Techniques utilized to predict future events or trends, including sales, economic conditions, and consumer behavior predictions.
Ratio Analysis
A quantitative analysis of information contained in a company’s financial statements, used to evaluate the overall financial condition and performance of a business.
Forecasting Method
A set of techniques used to predict future events or trends, such as market demand or sales, based on historical data and other information.
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