Two companies reported the following information.

Company A Company B

Profit (loss).....................................................$ (5,000)..................$100,000

Cash provided (used) by operating activities...............(10,000) .....................50,000

Cash provided (used) by investing activities...............(70,000) ...................30,000

Cash provided (used) by financing activities...............120,000.................(100,000)

(a) Calculate free cash flow for each company.

(b) Which company is more likely to be in the early stages of its development? Explain.