Chapter 17, Problem 2EYCT

(a)

To determine

Cash Flow Statement:

Cash Flow Statement is a fundamental financial statement that renders valuable information regarding the cash inflows or the cash receipts of a business and the cash outflows or cash payments for a specific period of time.

The cash flow statement also provides information regarding the net cash change that occurred during a period, classifying the activities into three categories those are cash from operating activities, investing, and financing activities.

To determine: The free cash flow for each company.

(b)

To determine

The conclusions concerning the management of cash for both the companies.