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You are evaluating two companies as possible investments. The two companies, similar in size, are each involved in the manufacturing industry in Canada Statement of
You are evaluating two companies as possible investments. The two companies, similar in size, are each involved in the manufacturing industry in Canada Statement of Cash Flows For the Year Ended December 31, 2020 NITRO INC SABLE CORP Operating activities: Net income $ 139,000 $ 72,000 149.000 10,000 90,000 90.000 (78,000 (73,000 10,000 8,000 168,000 165.000 Adjustments for non-cash items Netcosh provided by operating activities Investing activities: Purchase of property, plant, and equipment Sale of property, plant and equipment Net cash used for investing activities Financing activities: ssuance of short-term notes payable Payment of short-term nates payable Payment of dividends Net cash provided by used financing activities - ncrease ( decrease in cash Lash bare at beginning of year Cash balance at end of year 20,000 (15,000 3.000 95,000 (55,000 30,000 10,000 2000 32,000 18,000 $ 50.000 (3,000 22.000 20.000 $ 50,000 ANSWER EACH OF THE FOLLOWING QUESTIONS. READ ALL AVAILABLE CHOICES CAREFULLY. a Operating activities: Identify the company with the stronger performance. Choose + b. Issuance of short-term notes payable: Identify the preferred company Choose c. Financing activities: Which company appears to be carrying the higher debt burden? Choose d. Identify which company would be the stronger investment recommendation Choose
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