HW12#12: RATIO ANALYSIS (3 pts) USE RATIO TO EVALUATE COMPANIES' SOLVENCY: Financial Information, for Nike Corporation and New Balance Corporation, is presented from their 2 annual reports. INSTRUCTIONS: (a) Calculate the Free Cash Flow Ratio for each company. (b) Which company has the highest Free Cash Flow Ratio and why? 017 Nike Corporation Cash provided by operations Current liabilities, 2017 Current liabilities, 2016 Current liabilities, 2015 Long-term liabilities 2017 Long-term liabilities, 2016 Long-term liabilities, 2015 Dividends paid in cash Capital expenditures (a) FREE CASH FLOW RATIO (10 pts) (b) Short Explanation: (10pts) New Balance Corporation $975,000 400,000 125,000 75,000 200,000 206,000 202,000 84,000 100,000 $1,240,000 300,000 250,000 225,000 350,00 285,000 250,000 75,000 200,000