Selected information (in millions) for two close competitors, Manulife Financial Corporation and Great-West Life Assurance Company, follows for the year ended December 31, 2017:

Instructions

a. Calculate the free cash fl ow for each company.

b. Which company appears to be in a stronger financial position?

Taking It Further

By comparing the companies? cash flows, is either company in a growth stage? Explain.

Transcribed Image Text:

Great-West Life Manulife Profit Cash provided by operating activities Cash used by investing activities Cash provided (used) by financing activities Cash and cash equivalents, end of period Dividends paid $ 2,262 17,791 (16,287) 14 15,098 (1,780) $ 2,739 5,638 (3,984) (1,529) 2,634 (1,640)