Question - Information for two companies in the same industry, Merrill Corporation and Wingate Corporation, is presented here.
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Merrill Corporation
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Wingate Corporation
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Net cash provided by operating activities
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$80,000
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$100,000
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Average current liabilities
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50,000
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100,000
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Net income
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200,000
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200,000
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Capital expenditures
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40,000
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70,000
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Dividends paid
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5,000
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10,000
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Instruction -
Compute free cash flow for both companies and compare.
Compute cash provided by operating activities - direct method.