Applied Technology, Inc., and Four-Star Catering are asking you to recommend their stock to your clients. Because Applied and Four-Star earn about the same net income and have similar financial positions, your decision depends on their statements of cash flows, summarized as follows:

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

Applied Four-Star Net cash provided by operating activities: Cash provided by (used for) investing activities: 30,000 S 70,000 Purchase of plant assets Sale of plant assets Issuance of common stock Paying off long-term debt $(20,000) $(100,000) 40,000 20,000 10,000 (90,000) Cash provided by (used for) financing activities: 30,000 (40,000) $ 10,000 $10,000