Refer to the annual report of CVS Corporation and to the financial statements of Southwest Airlines Co. in the supplement to Chapter 5 to answer the following questions;

1. Prepare a table that shows the net amount each company spent on property and equipment (from the statement of cash flows), the total property and equipment (from the balance sheet), and the percentage of the first figure to the second for each of the past two years. Which company grew its property and equipment at a faster rate?

2. Calculate free cash flow for each company for the past two years. What conclusions can you draw about the need for each company to raise funds from debts and equity and the ability of each company to grow?