Decision Case 16-1

Theater by Design and Show Cinemas

Decision Case 16-1 Theater by Design and Show Cinemas are asking you to recommend their stock to your clients. Because Theater by Design and Show income and have similar financial of cash flows, summarized as follows: Cinemas earn about the same net positions, your decision depends on their statement Theater by Design Show Cinemas 70,000 Net Cash Provided by Operating Activities Cash Provided by (Used for) Investing Activities: 30,000 Purchase of Plant Assets (20,000) 40,000 (100,000) Sale of Plant Assets 20,000 10,000 90,000) Cash Provided by (Used for) Financing Activities: 30,000 Issuance of Common Stock Payment of Long-term Debt Net Increase (Decrease) in Cash (40,000) 10,000 10,000 Based on their cash flows, which company looks better? Give your reasons