Analyzing the Statement of Cash Flows

Manning Company reported the following information: cash provided by operating activities, $$425,000$; cash used by investing activities, $$200,000$; average debt maturing over the next $5$ years, $$80,000$; capital expenditures, $$275,000$; cash dividends, $$60,000.$

Required:

Compute free cash flow and the cash flow adequacy ratio. Round ratios to three decimal places.

Free cash flow:

Cash flow adequacy ratio: