Solution-Cash flows - design and showcase cinemas

Cash flows - design and showcase cinemas

Assignment Help Cost Accounting

Reference no: EM13546302

Theater by Design and Showcase Cinemas are asking you to recommend their stock to your clients. Because Theater by Design and Showcase earn about the same net income and have similar financial positions, your decision depends on their cash flow statements, summarized as follows:

	Theater by Design		Showcase Cinemas
Net cash provided by operating activities		$ 30,000		$ 70,000
Cash provided by (used for) investing activities:
Purchase of plant assets
Sale of plant assets	$(20,000)		$(100,000)
Cash provided by (used for) financing activities:	40,000	20,000	10,000	(90,000)
Issuance of common stock		-		30,000
Paying off long-term debt		(40,000)		-
Net increase in cash		$ 10,000		$ 10,000

Requirement

1. Based on their cash flows, which company looks better? Give your reasons.

Reference no: EM13546302

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Cash flows - design and showcase cinemas

Reference no: EM13546302

Reference no: EM13546302

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