3 25 points For each of the three years presented on your co

3) 25 points For each of the three years presented on your company\'s income statement and statement of cash flows: a) Calculate the ratio of net cash from operating activities to net income (or net loss) b) Calculate free cash flow for each of the three years. (Remember that capital expenditures\" may be presented simply as \"purchases of plant and equipment\" on the SCF.) c) Comment briefly on the trends of these ratios and the possible implications for your company.

Solution

3. A. 2017. 2016. 2015

Net cash from operating/

Net income. 1.64. 3.13. 5.11

Free cash flow for 3yrs. (186). 890. 1019

Explanation. (4930-5116) (5708-4818) (5366-4347)

Here, the company even though is continuing to get higher profit the cash flows are weak because of heavy investment in health care and post retirement benefits..