Information for two companies in the same industry, Kingbird Inc. and Oriole Company, is presented here. Kingbird Inc. Oriole Company Net cash provided by operating activities $87,000 $106,000 Average current liabilities 56,000 106,000 Net income 207,000 206,000 Capital expenditures 46,000 76,000 Dividends paid 5,800 10,600 Compute free cash flow for both companies and compare. (Show a negative free cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Kingbird Inc. Oriole Company Free cash flow 2$ 2$ v 's free cash flow is better.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Information for two companies in the same industry, Kingbird Inc. and Oriole Company, is presented here.

 
 
Kingbird Inc.
 
Oriole Company
Net cash provided by operating activities
  $ 87,000   $106,000
Average current liabilities
  56,000   106,000
Net income
  207,000   206,000
Capital expenditures
  46,000   76,000
Dividends paid
  5,800   10,600


Compute free cash flow for both companies and compare. (Show a negative free cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

   
Kingbird Inc.
 
Oriole Company
Free cash flow
Current Attempt in Progress
Information for two companies in the same industry, Kingbird Inc. and Oriole Company, is presented here.
Kingbird Inc.
Oriole Company
Net cash provided by operating activities
$87,000
$106,000
Average current liabilities
56,000
106,000
Net income
207,000
206,000
Capital expenditures
46,000
76,000
Dividends paid
5,800
10,600
Compute free cash flow for both companies and compare. (Show a negative free cash flow with either a - sign e.g. -15,000 or in
parenthesis e.g. (15,000).)
Kingbird Inc.
Oriole Company
Free cash flow
$
$
v 's free cash flow is better.
eTextbook and Media
Transcribed Image Text:Current Attempt in Progress Information for two companies in the same industry, Kingbird Inc. and Oriole Company, is presented here. Kingbird Inc. Oriole Company Net cash provided by operating activities $87,000 $106,000 Average current liabilities 56,000 106,000 Net income 207,000 206,000 Capital expenditures 46,000 76,000 Dividends paid 5,800 10,600 Compute free cash flow for both companies and compare. (Show a negative free cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Kingbird Inc. Oriole Company Free cash flow $ $ v 's free cash flow is better. eTextbook and Media
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