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Look at the information below for Company A and Company B. Which company would you want to invest in? Why? What concerns do you have?

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Look at the information below for Company A and Company B. Which company would you want to invest in? Why? What concerns do you have? Sales Company A $500,000 (425.000) $ 75,000 Company B $500,000 (425.000) $ 75,000 Expenses Net Income u Cash held: Beginning of year End of Year $25,000 25.000 $25,000 25,000 Increase in cash $ 0 $ 0 Cash received Company A $450,000 Company B $350,000 from customers from sale of fixed assets 5.000 60.000 $455,000 $410,000 $380,000 $400,000 70,000 10,000 Total cash received Cash paid: to suppliers for purchase of fixed assets for purchase of investments Total cash paid Increase in cash 5.000 0 $455,000 $410,000 $0 $0

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