Question: Selected information for two competitors, The Gap Inc. and Le ChÃ¢teau Inc., follows for year ended January 28, 2012: Instructions (a) Calculate the free cash

Selected information for two competitors, The Gap Inc. and Le ChÃ¢teau Inc., follows for year ended January 28, 2012:

Instructions
(a) Calculate the free cash flow for each company.
(b) Which company appears to be in the stronger financial position?
TAKING IT FURTHER
By comparing the companies' cash flows, can you tell which company might be downsizing? Explain.

Profit Cash provided (used) by operating activities Cash provided (used) by investing activities Cash used by financing activities Cash and cash equivalents, end of period The Gap (in millions of U.S. dollars $ 833 1,363 (454) (002) 1,885 Le Chteau (in thousands of Canadian dollars) $ (2,386) (11,304) 6,545 (5,709) 7,193

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