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.
2. What information do these cash-based performance measures provide with regard to the two companies?

Transcribed Image Text:

Ditka Inc. McMahon Company Cash provided by operating activities Capital expenditures $2,475,000 1,157,000 285,000 985,000 $1,639,000 189,000 1,212,000 Dividends Average debt maturity over next 5 years