Refer to the data in Exercise 17-19 for Rennie Recreation Products Inc. Which case indicates the best financial position? Give the reasons for your answer by analyzing each case.

In Exercise

Data From Exercise 17-19

The income statement and additional data of Flashpoint Consulting Ltd. follow:

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Case A Case B Case C Cash flows from operating activities Net income Amortization Increase in current assets Decrease in current liabilities 120,000 12,000 $120,000 44,000 (4,000) (28,000) (76,000) (32,000) (24,000) 44,000 44,000 00004.000 64.000 64,000 Cash flows from investing activities: Acquisition of property, plant, and Sales of property, plant and equipment (364,000) (364,000) (364,000) 16,000 388,000 16,000 (348,000) (348,000) 200,000 516,000 164,000 400,000 2,00 Cash flows from financing activities: 64,000 (36,000) (116,000) (84,000) (20,000) $(24,000) $48,000 68,000 New borrowing Payment of debt Net increase (decrease) in cash