Question: Exercise 11-38 (Algorithmic) Analyzing the Statement of Cash Flows Information for Ditka Inc. and McMahon Company is given below: Ditka Inc McMahon Company Cash provided

Exercise 11-38 (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 293,000 187,000
Average debt maturity over next 5 years 1,988,000 1,212,000

1. 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 $

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