Lowball Ltd. and Cheapskate Inc. are both no-frills, discount distribution companies. The following financial information regarding each company is available:

Required
a. Indicate which company generated more free cash flow.
b. Indicate which company has the better cash flow adequacy ratio.
c. Does one company have a better cash position? If so, explain why.

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Lowball Cheapskate Net income Capital expenditures Dividends declared and paid Average amount of debt maturing in 5 years Cash flows from operating activities S225,000 $225,000 125,000 125,000 65,000 3,000 10,000 50,000 20,000 30,000