HW12#12: RATIO ANALYSIS USE RATIO TO EVALUATE COMPANIES SOLVENCY: Financial Information, for Nike Corporation and New Balance Corporation is presented from their 2017 annual reports. INSTRUCTIONS: (al Calculate the Free Cash Flow Ratio for each company. (b) Which company has the hiphest Free Cash Flow Ratio and why? Nike Corporation Cash provided by operations New Balance Corporation Current liabilities, 2017 $1,240,000 $975,000 300,000 400,000 Current liabilities, 2016 250,000 125.000 Current liabilities. 2015 225,000 75.000 Long-term liabilities 2017 350,00 200.000 Long-term liabilities, 2016 285.000 206,000 Long-term liabilities, 2015 250,000 202,000 Dividends paid in cash 75,000 84.000 Capital expenditures 200,000 100,000 (a) FREE CASH FLOW RATIO (b) SHORT EXPLANATION: 12-13