Information for two companies in the same industry, Wildhorse Co. and Sheffield Corp., is presented here. Wildhorse Co. Sheffield Corp.Net cash provided by operating activities $ 84,000 $103,000Average current liabilities 53,000 103,000Net income 204,000 203,000Capital expenditures 43,000 73,000Dividends paid 5,500 10,300Compute 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).) Wildhorse Co. Sheffield Corp.Free cash flow $enter a dollar amount $enter a dollar amount

The free cash flow is the remaining cash to repay the dues of creditors and dividends to the…

Answered: Information for two companies in the…

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter12: The Statement Of Cash Flows

Section: Chapter Questions

Problem 12.1DC

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Information for two companies in the same industry, Wildhorse Co. and Sheffield Corp., is presented here.

	Wildhorse Co.	Sheffield Corp.
Net cash provided by operating activities	$ 84,000	$103,000
Average current liabilities	53,000	103,000
Net income	204,000	203,000
Capital expenditures	43,000	73,000
Dividends paid	5,500	10,300

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).)

		Wildhorse Co.		Sheffield Corp.
Free cash flow		$enter a dollar amount		$enter a dollar amount

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