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Thompson Technology, Inc. and Beaudoin Catering Corporation are asking you to recommend their stock to your clients. Because Thompson and Beaudoin earn about the same
Thompson Technology, Inc. and Beaudoin Catering Corporation are asking you to recommend their stock to your clients. Because Thompson and Beaudoin earn about the same net income and have similar financial positions, your decision depends on their statements of cash flows, which are summarized as follows: THOMPSON BEAUDOIN $30,000 $70,000 Netcash provided from operating activities Cash provided by (used for) investing activities Purchase of plant assets Sale of plant assets Cash provided for (used for) financing activities Issuance of common stock Paying off long-term debt Netincrease in cash ($20,000) 40,000 ($100,000) 10,000 20,000 (90,000) 30,000 (40,000) $10,000 $10,000 1. Based on their cash flows, which company looks better? Give your reasons
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