Presented below is cash flow information for two competitors—The Longo Corporation and The Davis Company (amounts in thousands):

Describe the cash management strategy of each company by identifying the key sources and uses of cash by each firm. Explain why the cash flow from operations of The Longo Corporation differs from the company’s operating loss of \($6,050\). Calculate the change in the cash balance for The Davis Company.

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Cash Flow From Operating Company Profit Operations Investing Financing Longo Corporation... $(6,050) Davis Company (2,980) $(1,320) (3,260) $ (693) $ 415 1,502 1,809