Calculation of Free Cash Flow and Ratio
Dawe Corporation Reports

Calculation of free cash flow and ratio
Dawe Corporation reports the following information:
$\begin{array}{llcc} \text { Net cash provided by operating activities............................. } &\$285,000 \\ \text { Average current liabilities..................................................... } &150,000\\ \text { Average long-term liabilities................................................. } &100,000\\ \text {Dividends declared................................................................. } &60,000\\ \text {Capital expenditures.............................................................. } &110,000\\ \text { Payments of debt.................................................................. } &35,000\\\end{array}$
Instructions
Calculate the following:
a) Cash Debt Coverage Ratio
b) Free Cash Flow