K73. Analyzing the Statement of Cash FlowsInformation for Ditka Inc. and McMahon Company is given below:Ditka Inc.Cash provided by operating activitiesCapital expendituresDividendsAverage debt maturity over next 5 yearsRequired:Ditka Inc.McMahon Company$2,475,0001,157,000280,0001,988,000Compute Ditka's and McMahon's free cash flow and cash flow adequacy ratio. Round ratios to two decimal places.Free Cash FlowAdequacy Ratio72.26 X1,318,000 XMcMahon Company65.17 X$1,639,000748,000191,0001,212,000

Compute free cash flow as given below: For Ditka Inc.: Free cash flow = Net cash flow from operating…

Analyzing the Statement of Cash Flows Information for Ditka Inc. and McMahon Company is given below: Ditka Inc. Cash provided by operating activities Capital expenditures Dividends Average debt maturity over next 5 years Required: Compute Ditka's and McMahon's free cash flow and cash flow adequacy ratio. Round ratios to two decimal places. Free Cash Flow Adequacy Ratio 72.26 X Ditka Inc. McMahon Company 1,318,000 X $2,475,000 1,157,000 280,000 1,988,000 McMahon Company 65.17 X $1,639,000 748,000 191,000 1,212,000

Analyzing the Statement of Cash Flows Information for Ditka Inc. and McMahon Company is given below: Ditka Inc. Cash provided by operating activities Capital expenditures Dividends Average debt maturity over next 5 years Required: Compute Ditka's and McMahon's free cash flow and cash flow adequacy ratio. Round ratios to two decimal places. Free Cash Flow Adequacy Ratio 72.26 X Ditka Inc. McMahon Company 1,318,000 X $2,475,000 1,157,000 280,000 1,988,000 McMahon Company 65.17 X $1,639,000 748,000 191,000 1,212,000

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 32BE

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Chasse Building Supply Inc. reported net cash provided by operating activities of $243,000, capital expenditures of $112,900, cash dividends of $35,800, and average maturities of long-term debt over the next 5 years of $122,300. What is Chasses free cash flow and cash flow adequacy ratio? a. $94,300 and 0.77, respectively c. $130,100 and 1.06, respectively b. $94,300 and 0.82, respectively d. $165,900 and 1.36, respectively
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