Selected information (in US$ millions) for two close competitors, Potash Corporation of Saskatchewan Inc. and Agrium Inc.,

Question:

Selected information (in US$ millions) for two close competitors, Potash of Saskatchewan Inc. and Agrium Inc., follows for the year ended December 31, 2011:
Potash Agrium
Profit.........................................................$3,081.....................$1,508
Cash provided by operating activities....................3,485.......................1,350
Cash used by investing activities.......................(2,251) .......................(151)
Cash used by financing activities......................(1,216)....................... (423)
Cash and cash equivalents, end of period................430..........................635
Dividends paid.............................................(208) ........................(18)
Instructions
(a) Calculate the 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 is likely in a growth stage? Explain.
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Free Cash Flow
Free cash flow (FCF) represents the cash a company generates after accounting for cash outflows to support operations and maintain its capital assets. Unlike earnings or net income, free cash flow is a measure of profitability that excludes the...