You have been asked to evaluate two companies as possible investments. The two companies, Norfolk Industries Inc. and Strafford Crystal Limited, are similar in size. Assume that all other available information has been analyzed, and the decision concerning which company's shares to purchase depends on their cash flow data.

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Using the information provided, identify and discuss the strengths and weaknesses for these companies that are relevant to the decision of which company to invest in. Conclude your discussion by recommending one company's shares as an investment.

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A Norfolk Industries Inc. Statement of Cash Flows For the Years Ended September 30, 2020 and 2019 B C D E F 2 m 2020 2019 3 Operating activities: 4 Net income $ 17,000 $ 44,000 5 Adjustments for non-cash items: 6 Total 7 Net cash provided by operating activities (14,000) 3,000 (4,000) 40,000 8 Investing activities: 9 Purchase of property, plant, and equipment $(13,000) $ (3,000) 10 Sale of property, plant, and equipment 86,000 79.000 11 12 13 23 Net cash provided by investing activities Financing activities: 73,000 76,000 Issuance of short-term notes payable 43,000 19,000 14 Payment of short-term notes payable (101,000) (108,000) 15 Net cash used for financing activities (58,000) (89,000) 16 Increase in cash 18,000 27,000 17 Cash balance at beginning of year 18 Cash balance at end of year $ 49,000 31.000 $31.000 +,000 19