Selected information for two competitors, The Gap Inc. and lululemon athletica inc., follows:

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

The Gap (in USS millions) for the year ended January 31, 2015 Profit Cash provided by operating activities Cash used by investing activities Cash used by financing activities Cash and cash equivalents, end of period lululemon (in US$ millions, for the year ended February 1,2015) 239 314 (120) (149) $ 1,262 2,129 (596) (1,507) 1,515 664