The data that follow pertain to two of Japan’s best-known and most successful companies, Sony Corporation and Panasonic, Inc. (Numbers are in billions of yen.)

Calculate cash flow yield, cash flows to sales, cash flows to assets, and free cash flow for the two years for both Sony Corporation and Panasonic, Inc. (Round cash flow yield to one decimal place.) Which company is better able to generate sufficient cash flow? Which company has the best year-to-year trend? Which company do you think will probably need external financing?

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Sales Net income Average total assets Net cash flows from operating activitiles Dividends paid Purchases of plant asset Sales of plant assets Sony Corporation Panasonic, Inc. 2009 2008 7,766 #9,069 (379) 282 6,924 7,671 117 466 2009 2008 7,730 8,871 (99) 369 12,284 12,135 758 43 496 153 522 475 145 419 151