Gillam Ltd. and Genoway Inc. are asking you to recommend their shares to your clients. Gillam Ltd. and Genoway Inc. earn about the same net income and have similar financial positions, so your decision depends on their cash flow statements, summarized as follows:

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

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Gillam Ltd. Genoway Inc Net cash inflows from operating activities $90,000 $50,000 Net cash inflows (outflows) from investing activities: Purchase of property, plant, $(100,000) $(20,000) Sale of property, plant, 10,000 (90,000) 40,000 20,000 Net cash inflows (outflows) Issuance of common shares Issuance of long-term debt Repayment of long-term debt 30,000 80,000 (120,000) 30,(EK) $30,000 (ADJXX)) $30,000