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You are considering investing in the bed and breakfast industry. Two B&Bs, Burleigh Heaven and Miami Paradise, have been shortlisted for your consideration. Both companies
You are considering investing in the bed and breakfast industry. Two B&Bs, Burleigh Heaven and Miami Paradise, have been shortlisted for your consideration. Both companies are about the same size, with similar assets and sales. The following is extracted from their statements of cash flows for the year ended 31 December 2016. The statements of financial position as at 31 December 2016 show the following balance for cash and cash equivalent for the two companies: Calculate the cash to daily expenses ratio for both companies. If the adequacy of cash is the only factor in your investment decision, which company would you invest in
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