Information for Ditka Inc. and McMahon Company is given below:

Required:
Compare Ditka Inc. and McMahon Company by computing and analyzing the following cash-based performance measures for each company:
(a) Free cash flow
(b) Cash flow adequacyratio.

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Ditka Inc Cash provided by oerang activities Capital expenditures Dividends $2,475,000 1,157,000 285,000 1,988,000 McMahon Company $1,639,000 748,000 189,000 1,212,000 Average debt maturity over next 5 years