Question

Which company has the least amount of free cash flow?

Group of answer choices

Andrews

Ferris

Digby

Baldwin

Erie

Chester

CAPSTONE COURIER Andrews Baldwin Chester Round 5, 12/31/2016 Erie Ferris Digby $4.189 $4,280 $5,016 $31,654 ($3,572) $1,905 $7,787 $7,587 $0 $11,827 ($508) $7,207 $317 $12,907 $0 $0 $5,220 $0 $3,583 ($8,617) ($307) $6,434 ($4,582) $17.403 $1,475 $29,895 $3,746 $3,585 ($3,662) $16.208 $1,308 $12,792 ($2,797) $20.996 $2,175 ($3,473) ($3,426) $39,836 (5582) ($307) $818 $1,577 $2,210 ($15,885) ($6,600) ($19,360) ($3,900) ($4,000) $0 $0 $497 $0 $15,000 ($14,866) $0 ($302) $5,597 $0 ($35,029) $21,830 SO $0 ($59,660) So $0 $0 ($4,000) $12,555 ($32,105) $0 Baldwin SO Financial Analysis Cash Flow Statement Survey Cash flows from operating activities Net Income (Loss) | Adjustment for non-cash items Depreciation Extraordinary gains/losses/writeoffs Changes in current assets and liabilities Accounts payable Inventory Accounts receivable Net cash from operations Cash flows from investing activities Plant improvements (net) Cash flows from financing activities Dividends paid Sales of common stock Purchase of common stock Cash from long term debt issued Early retirement of long term debt Retirement of current debt Cash from current debt borrowing Cash from emergency loan Net cash from financing activities Net change in cash position Balance Sheet Survey Cash Accounts Receivable Inventory Total Current Assets Plant and equipment Accumulated Depreciation Total Fixed Assets Total Assets Accounts Payable Current Debt Long Term Debt Total Liabilities Common Stock Retained Earnings Total Equity Total Liabilities & Owner's Equity Income Statement Survey Sales Variable Costs (Labor, Material, Carry) Depreciation SG&A (R&D, Promo, Sales, Admin) Other (Fees, Write Offs, TQM, Bonus) EBIT Interest (Short term, Long term) Taxes Profit Sharing Net Profit Page 3 $0 Andrews $3,434 $8,307 $8,617 $20,358 $113,800 ($37.933) $75,867 $96,225 $6,583 $0 $41,700 $48,283 $18,360 $29,582 $47,942 $96.225 Andrews $101,073 $72,513 $7,587 $8,978 $0 $11.996 $5,421 $2,301 $85 $4,189 $14,914 $25,931 $40,845 $177,400 ($76,903) $100,497 $141.342 $8,687 $12,555 $69,850 $91,092 $22,860 $27,391 $50,251 $141.342 Baldwin $181,452 $126,204 $11,827 $16,506 $8,542 $18,374 $11,655 $2,352 $87 $4,280 $7,550 $0 $7,550 $7,873 Chester $15.756 $12,076 $5,044 $32,876 $124,100 ($33,454) $90,646 $123,523 $11,450 $7,550 $56,850 $75,850 $22,775 $24,898 $47,673 $123.523 Chester $146,924 $97,063 $7.207 $23,660 $2,817 $16,177 $8,303 $2,756 $102 $5,016 $10,000 $0 ($30,791) $10,000 $0 ($10,791) $3,605 Digby $3,605 $9,550 $3,491 $16,646 $122,200 ($40,920) $81,280 $97.926 $4,443 $10,000 $59,850 $74,293 $18,360 $5,273 $23,633 $97.926 Digby $116,188 $67,263 $7,787 $25,405 $3,500 $12,233 $9,242 $1,047 ($22,771) ($2,296) Erie $52,632 $16,903 $3,473 $73,008 $193,600 ($71,416) $122,184 $195,192 $10,571 $21,830 $59,643 $92,044 $24,310 $78,839 $103,148 $195.192 Erie $205,657 $125,553 $12,907 $7,027 $284 $59,886 $10,194 $17,392 $646 $31,654 $233 $0 ($11,811) $9,975 $0 ($1,107) ($3,429) Ferris $5,613 $4,576 $10,616 $20,804 $78,300 ($42,600) $35,700 $56.504 $3,463 $9,975 $16,308 $29,747 $19,119 $7,638 $26,757 $56.504 Ferris $55,675 $43,105 $5,220 $9,381 $36 ($2,067) $3,428 ($1,923) $0 ($3,572) $39 $1,905

Answer 1

For the following calculation the formula used is

Free Cash Flow = Operating Cash Flow - Capital Expenditures

		Andrews	Baldwin	Chester	Digby	Erie	Ferris
A	Net cash from Operations	$    6,434	$ 29,895	$   16,208	$ 20,996	$   39,836	$    1,577
B	Capital Expenditures	$          -	$          -	$ -15,885	$ -6,600	$ -19,360	$ -3,900
A - B	Free Cash Flow	$   6,434	$ 29,895	$        323	$ 14,396	$ 20,476	$ -2,323

Given by the calculations we can see that Ferris has NEGATIVE free cash flow. It means it spent more money on buying the assets than it generated from Operations.

Next would be CHESTER