The cash flow analysis of Berkeley Company and Bellway Company reveals that Bellway Company has a better operating performance and assets utilization compared to Berkeley Group. The free cash flow valuation method shows that Bellway Company's ability to generate cash is increased from 2015 to 2016, while Berkeley Company's free cash flow decreased during the same period. Additionally, Bellway Company is able to pay its debt obligations and dividend to shareholders, indicating improved financial performance. The agency theory is also applied, highlighting the importance of directors working in the best interest of shareholders to maximize returns.