Question
The following information was from the financial statements of Samsung Technology Ltd. for the years 2019 and 2018 (in millions of dollars): Samsung Technology Ltd.
The following information was from the financial statements of Samsung Technology Ltd. for the years 2019 and 2018 (in millions of dollars):
Samsung Technology Ltd. | 2018 | 2019 |
Cash flow from operating activities | $5,456 | $5,968 |
Cash paid for purchases of property, plant, and equipment | 812 | 755 |
Property, plant, and equipment, net | 6,097 | 6,091 |
Dividends paid | 300 | 300 |
A. Calculate the capital acquisitions ratio for each of the two years. Round your answers to two decimals
places.
B. Calculate the free cash flow for each of the two years.
C. Comment on the sufficiency of the capital acquisitions ratio and free cash flow for the two years and implications for future corporate strategy.
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