Question
For JJ Incorporated: Cash flows from assets = 300 dollars EBIT (from 2019 INCOME STATEMENT) = 300 dollars depreciation expense (from 2019 INCOME STATEMENT )
For JJ Incorporated:
Cash flows from assets = 300 dollars
EBIT (from 2019 INCOME STATEMENT) = 300 dollars
depreciation expense (from 2019 INCOME STATEMENT ) = 40 dollars
taxes (from 2019 INCOME STATEMENT ) = 40
fixed assets from BALANCE SHEET dated December 31, 2018 = 1400 dollars
fixed assets from BALANCE SHEET dated December 31, 2019 = 1360 dollars
Additions to (Changes in) NWC for 2019 = 0 dollars
For CAR Incorporated:
Cash flows from assets = 300 dollars
EBIT (from 2019 INCOME STATEMENT) = 100 dollars
depreciation expense (from 2019 INCOME STATEMENT ) = 20 dollars
taxes (from 2019 INCOME STATEMENT ) = 40
fixed assets from BALANCE SHEET dated December 31, 2018 = 1400 dollars
fixed assets from BALANCE SHEET dated December 31, 2019 = 1160 dollars
Additions to (Changes in) NWC for 2019 = 0 dollars
For JOJO Incorporated:
Cash flows from assets = 300 dollars
EBIT (from 2019 INCOME STATEMENT) = 40 dollars
depreciation expense (from 2019 INCOME STATEMENT ) = 0 dollars
taxes (from 2019 INCOME STATEMENT ) = 20
fixed assets from BALANCE SHEET dated December 31, 2018 = 1400 dollars
fixed assets from BALANCE SHEET dated December 31, 2019 = 1120 dollars
Additions to (Changes in) NWC for 2019 = 0 dollars
Based only on the numbers provided, which company is doing the best ? In other words, if you were an individual investor, which company would you invest?
A. JJ INCORPORATED
B. CAR INCORPORTATED.
C. JOJO INCORPORATED
D. You are indifferent between JJ INCORPORATED and JOJO INCORPORATED
E. You are indifferent amongst JJ INCORPORATED, CAR INCORPORTATED, and JOJO INCORPORATED
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