A and B Company supply sports equipment to various college and professional teams. Information for each company is as follows:

1. Compute the free cash flow and cash flow adequacy ratio for each company. Round ratios to one decimal place
2. What information do these metrics provide with regard to the two companies?

\begin{tabular}{|l|l|l|} \hline & A Co. & B Co. \\ \hline Netcashflowsfromoperatingactivities & 2,475,000 & 1,639,000 \\ \hline Purchasesofproperty,plant,andequipment & 1,442,000 & 937,000 \\ \hline Averagedebtmaturingoverthenextfiveyears & 985,000 & 1,212,000 \\ \hline \end{tabular} \begin{tabular}{|l|l|l|} \hline & A Co. & B Co. \\ \hline Netcashflowsfromoperatingactivities & 2,475,000 & 1,639,000 \\ \hline Purchasesofproperty,plant,andequipment & 1,442,000 & 937,000 \\ \hline Averagedebtmaturingoverthenextfiveyears & 985,000 & 1,212,000 \\ \hline \end{tabular}