
A.
Statement of
Statement of cash flow is a financial statement that shows the cash and cash equivalents of a company for a particular period of time. It shows the net changes in cash, by reporting the sources and uses of cash as a result of operating, investing, and financing activities of a company.
Free cash flow describes the net cash provided from operating activities after making required adjustments for dividends and capital expenditures. In other words, it is the cash flow arrived after making payment for capital expenditures and dividend payments.
To Determine: The free cash flow for all three companies.
B.
To Compute: The ratio of free cash flow to sales for all three companies.
C.
To Discuss: The way in which Incorporation A compares to the other two companies with respect to generating free cash flow.

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Chapter 13 Solutions
CengageNOWv2, 2 terms Printed Access Card for Warren/Reeve/Duchac’s Financial & Managerial Accounting, 14th
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