P13-8A Selected information (in thousands) for Reitmans (Canada) Limited and Le Chteau Inc. for fiscal 2015 follows:

		Reitmans	Le Chteau
	Net cash provided (used) by operating activities	$34,770	$(14,161)
	Net capital expenditures	33,291	9,115
	Dividends paid	12,782	-0-

Instructions

(a) Calculate the free cash flow for each company. Which company has the better free cash flow? Why?

(b) If a company has a negative free cash flow, does that necessarily imply that overall cash flow will be negative, too? Why or why not?