1. For the end of its fiscal year, Calvan Water Corporation (CWC) reported net income of $12 million and a weighted average of 2,000,000 common shares outstanding. The company paid $800,000 in preferred dividends and had 100,000 options outstanding with an average strike price of $20. CWC's market price for the year averaged $25 per share.
2. 
   
3.  What is the low CWC diluted EPS:

1. a. US GAAP
2. b. IFRS
3. c. Andrew Potter is comparing the cash flow generation capacity of Microsoft to that of Apple Inc. He collects information from the companies' annual reports and prepares the following table.

Cash flow from operating activities as a percentage of total net revenue

2017 (%) 2016 (%) 2015 (%)

Microsoft 43,9 39,1 31,7

Apple Inc. 27,7 30,5 34,8

As a percentage of average total assets

2017 (%) 2016 (%) 2015 (%)

Microsoft 18.2 18.1 17.1

Apple Inc. 18,2 21,5 31,1

What is Potter likely to conclude about the relative cash flow generation of these two companies?