Question
Calculating Free Cash Flow The following financial information is taken from the annual reports of the Jackson Company and the Pearce Company: Jackson Pearce Cash
Calculating Free Cash Flow The following financial information is taken from the annual reports of the Jackson Company and the Pearce Company:
| Jackson | Pearce | |
|---|---|---|
| Cash flow from operating activities | $125,000 | $375,000 |
| Cash investment in property & equipment | 37,500 | 120,000 |
Calculate the free cash flow for each company. Jackson $____
Pearce $_____
Which firm has better cash flow health?Jackson /Pearce
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Modern Auditing
Authors: William C. Boynton, Walter G. Kell
6th Edition
0471596876, 9780471596875
