Selected information for two retail competitors, Reitmans (Canada) Ltd. and Le Ch?teau, in thousands of dollars, 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, is either company in a growth stage? Explain.

Transcribed Image Text:

Reitmans Jan. 28, 2017 Le Château Jan. 28, 2017 Profit (Loss) Cash provided by operating activities Cash used by investing activities Cash used by financing activities Cash and cash equivalents, end of period $ 10,932 53,897 (33,954) (14,562) 120,265 $(37,226) (7,428) (4,516) 12,755 266