Analyzing the Statement of Cash Flows}

Information for Jackson Inc. and Fleury Company is given below:

\section*{Required:}
1. Compute Jackson's and Fleury's free cash flow and cash flow adequacy ratio. (Note: Round ratio to two decimal places.)
2. CONCEPTUAL CONNECTION What information do these cash-based performance measures provide with regard to the two companies?
\section*{OBJECTIVE 456}
\section*{Exercise

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