This exercise will help you to understand how to calculate a company”s free cash flow.

Instructions

Using the data given in the following table, determine if the free cash flow for Exxon Mobil CP has increased/decreased during 2014 versus 2013. Figures given in the table are in billions.

Year ending

December 31, 2014

December 31, 2013

Cash Provided by Operating Activities

$52.0

$49.30

Capital Expenditures

$15.40

$15.50

Payment of Dividends

$7.90

$7.90