Thompson Technology, Inc., and Beaudoin Catering Corporation are asking you to recommend their stock to your clients. Because Thompson and Beaudoin earn about the same net income and have similar financial positions, your decision depends on their statements of cash flows, which are summarized as follows:

Requirement

Based on their cash flows, which company looks better? Give your reasons.

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Thompson $ 30,000 Beaudoin Net cash provided by operating activities: . $ 70,000 Cash provided by (used for) investing activities: Purchase of plant assets . $(20,000) $(100,000) Sale of plant assets.. 40,000 20,000 10,000 (90,000) Cash provided by (used for) financing activities: Issuance of common stock.. 30,000 Paying off long-term debt.. (40,000) Net increase in cash.. $ 10,000 $10,000