Consider each of the following independent situations.

(a) The retained earnings statement of Megan Corporation shows dividends of \(\$ 70,000\), while net income for the year was \(\$ 75,000\).

(b) The statement of cash flows for Nick Corporation shows that cash provided by operating activities was \(\$ 10,000\), cash used in investing activities was \(\$ 110,000\), and cash provided by financing activities was \(\$ 130,000\).

\section*{Instructions}

For each company provide a brief discussion interpreting these financial facts. For example, you might discuss the company's financial health or its apparent growth philosophy.