Consider three independent cases for the cash flows of Sharma Merchandising Corp. For each case, identify from the statement of cash flows how Sharma Merchandising Corp. generated the cash to acquire new plant assets. Rank the three cases from the most healthy, financially to the least healthy.

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A1 Case A Case B Case C- , 2 Cash flows from operating activities: 3Net income 4 Depreciation and amortization s-14,0001.5 17,000 14,000 15-140001 17,000 17,000 3,000) (1000(7,000 Increase in current assets 6 Decrease in current liabilities 8 Cash flows from investing activities: 10 Sales of plant assets (4,000): 24,000 (3,000) 27 000 (27,000)| 3,000) Acquisition of plant assets (141,0001一(141,000) (141,000) | 148,00028,000 7000 (113,000) 47,000 94,000) 104,00026,000 12 Cash flows from financing activities: 13 Issuance of stock 14 Payment of debt 15 16 Net increase (decrease) in cash 17 149,000 45,000) (38,000)(28,000) 9,000(12000) 121,000 $ (11,000) 22,000 5,000 IS