Question: Information for Ditka Inc. and McMahon Company is given below: Required: 1. Compute Ditkas and McMahons free cash flow and cash flow adequacy ratio. (Note:

Information for Ditka Inc. and McMahon Company is given below:

Required:
1. Compute Ditka€™s and McMahon€™s free cash flow and cash flow adequacy ratio. (Note: Round ratio to two decimal places.)
2. What information do these cash-based performance measures provide with regard to the two companies?

Ditka Inc. McMahon Company Cash provided by operating activities Capital expenditures Dividends $2,475,000 1,157,000 285,000 1,988,000 $1,639,000 748,000 189,000 Average debt maturity over next 5 years 1,212,000

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1 Free Cash Flow a Adequacy Ratio d Ditka Inc 1033000 b 052 e McMahon Company 702000 c ... View full answer

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