Compute free cash flow for both companies and compare

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Reference no: EM131702913

Question - Information for two companies in the same industry, Merrill Corporation and Wingate Corporation, is presented here.

 

Merrill Corporation

Wingate Corporation

Net cash provided by operating activities

$80,000

$100,000

Average current liabilities

50,000

100,000

Net income

200,000

200,000

Capital expenditures

40,000

70,000

Dividends paid

5,000

10,000

Instruction -

Compute free cash flow for both companies and compare.

Compute cash provided by operating activities - direct method.

Reference no: EM131702913

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