AN Selected information for two railway competitors, Canadian Pacific Railway Limited (CP) and Canadian National Railway Company

Question:

AN Selected information for two railway competitors, Canadian Pacific Railway Limited (CP) and Canadian National Railway Company (CN), in millions of dollars, follows for the year ended December 31, 2020:

Instructions

a. Calculate the free cash flow for each company.

b. Which company appears to be in a stronger financial position?

Why would both of these companies use a large amount of their cash on investing activities?

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Accounting Principles Volume 2

ISBN: 9781119786634

9th Canadian Edition

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak

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Question Posted: Jan 27, 2023 02:54 AM

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AN Selected information for two railway competitors, Canadian Pacific Railway Limited (CP) and Canadian National Railway Company

Question:

Profit for the year Cash provided by operating activities Cash used by investing activities Cash used by financing activities Cash and cash equivalents, end of period CP $ 2,444 2,802 (2,030) (764) 147 CN $3,562 6,165 (2,946) (2,707) 1,100

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a Net cash provided used by ...View the full answer

Accounting Principles Volume 2

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