Selected information (in thousands) for Reitmans (Canada) Limited and Le Chateau Inc. for fiscal 2010 follows: Instructions

Selected information (in thousands) for Reitmans (Canada) Limited and Le Château Inc. for fiscal 2010 follows:

Instructions
(a) Calculate the cash current debt coverage ratio, cash total debt coverage ratio, and free cash flow for each company.
(b) Using the ratios calculated in (a), compare the liquidity and solvency of the two companies.

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Net cash provided by operating activities Average current liabilities Average total liabilities Net capital expenditures Dividends paid Reitmans $146,139 77,798 115,926 33,185 49,351 Le Château $41,643 42,691 76,414 20,075 17,010