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bachelor in business administration
Polytechnic State University Sanluis
Jan-2006 - Nov-2010
CPA
Polytechnic State University
Jan-2012 - Nov-2016
Professor
Harvard Square Academy (HS2)
Mar-2012 - Present
Rollins Inc. is considering expanding its operations into different regions of the country; however this expansion will require significant cash flow as well as additional financing. Rollins reported the following information for 2009: cash provided by operating activities, $425,000; cash provided by investing activities, $115,000; average debt maturing over the next five years, $380,000; capital expenditures, $240,000; dividends, $40,000.
Required:
Compute free cash flow and the cash flow adequacy ratio. Comment on Rollins' ability to expand its operations.
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