1. Cornerstone Exercise 11-20 (Algorithmic) Determining Net Cash Flow from Investing Activities

   Davis Inc. reported the following information:

   	12/31/2019		12/31/2018
   Equipment	$160,000		$115,000
   Accumulated depreciation	(85,000)		(59,000)
   Investment (long-term)	18,610		10,000

   In addition, Davis sold equipment costing $12,500 with accumulated depreciation of $9,250 for $2,330 cash, producing a $920 loss. Davis reported net income for 2019 of $122,350.

   Required:

   Compute net cash flow from investing activities. Use a minus sign to indicate negative cash flows (outflows)

2. xercise 11-46 (Algorithmic) Analyzing the Statement of Cash Flows

   Information for Ditka Inc. and McMahon Company is given below:

   	Ditka Inc		McMahon Company
   Cash provided by operating activities	$2,475,000		$1,639,000
   Capital expenditures	1,157,000		748,000
   Dividends	272,000		190,000
   Average debt maturity over next 5 years	1,988,000		1,212,000

   Required:

   Compare Ditka's and McMahon's free cash flow and cash flow adequacy ratio. Round ratio to two decimal places.

   	Free Cash Flow	Adequacy Ratio
   Ditka Inc.	$
   McMahon Company	$