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Analyzing the Statement of Cash Flows Information for Ditka Inc. and McMahon Company is given below: Ditka Inc McMahon Company Cash provided by operating activities
Analyzing the Statement of Cash Flows Information for Ditka Inc. and McMahon Company is given below: Ditka Inc McMahon Company Cash provided by operating activities $2,475,000 $1,639,000 Capital expenditures 1,157,000 748,000 Dividends 279,000 188,000 Average debt maturity over next 5 years 1,988,000 1,212,000 Required: Compare Ditka's and McMahon's free cash flow and cash flow adequacy ratio. Round ratio to two decimal places. Free Cash Flow Adequacy Ratio Ditka Inc. 1,039,000 0.72 X McMahon Company 703,000 0.76 X
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