Condensed net income and cash flow information (in $ millions) follow for a recent year for two fast food companies, McDonalds Corporation and Quick Burger Inc., follow:

Net income (loss)

Net cash provided by operating activities Net cash provided (used) by investing activities Net cash provided (used) by financing activities Other (foreign exchange gain [loss]) Net increase in cash and cash equivalents Cash and cash equivalents, beginning of year Cash and cash equivalents, end of year

Required:

McDonalds

4,529.3

6,539.1 (1,420.0) 735.3 (246.8) 5,607.6 2,077.9 7,685.4

Quick Burger

161.1

212.5 35.4 (175.7) (12.2) 60.0 267.2 327.2

a) Compare the cash provided or used in each of the three activities by each company, b) Based on the information provided above, which company appears to be in the stronger position?

Explain the reasoning behind your decision.