Question: Below are summarized cash flows for two companies. Both companies are mature companies in the same industry and both began and finished the year with

Below are summarized cash flows for two companies. Both companies are mature companies in the same industry and both began and finished the year with the same amount of cash. Evaluate the two companies€™ situations regarding their cash flows. Which do you think shows a stronger cash flow and liquiditysituation?

Cash at the beginning of the year Operating cash flows Investing cash flows Financing cash flows Cash at the end of the year Company A $550,000 (28,000) 95,000 60,000 $677,000 Company B S550,000 298,000 (50,000) (121,000) S677,000

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