Question: Cornerstone Exercise 11-22 (Algorithmic) Analyzing the Statement of Cash Flows Rollins Inc. is considering expanding its operations into different regions of the country; however this

Cornerstone Exercise 11-22 (Algorithmic) Analyzing the Statement of Cash Flows

Rollins Inc. is considering expanding its operations into different regions of the country; however this expansion will require significant cash flow as well as additional financing. Rollins reported the following information for 2019: cash provided by operating activities, $428,900; cash provided by investing activities, $108,700; average debt maturing over the next 5 years, $345,500; capital expenditures, $264,630; cash dividends, $40,000.

Required:

Compute free cash flow and the cash flow adequacy ratio. Round ratio to two decimal places.

Free cash flow
Cash flow adequacy ratio

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