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Information for two companies in the same industry, Whispering Corporation and Sandhill Corporation, is presented here. Whispering Corporation Sandhill Corporation Net cash provided by operating

Information for two companies in the same industry, Whispering Corporation and Sandhill Corporation, is presented here. Whispering Corporation Sandhill Corporation Net cash provided by operating activities $76,000 $96,000 Average current liabilities 46,000 96,000 Net income 196,000 196,000 Capital expenditures Dividends paid 36,000 66,000 4,600 9,600 Compute free cash flow for both companies and compare. (Show a negative free cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Whispering Corporation Sandhill Corporation Free cash flow $ $ 's free cash flow is better. eTextbook and Media

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