Below are summary cash flow statements for three roughly equal-sized companies.

Calculate each companys cash balance at the end of the year.

Looking at companies A and B, which company would you prefer to own? Why?

Is Company Cs cash flow statement cause for any concern on the part of Cs management or shareholders? Why or why not?

($ millions)

A B C

Net cash flows from operating activities (300) (300) 300

Net cash used in investing activities (900) (30) (90)

Net cash from financing activities 1,200 210 (240)

Cash balance at beginning of year 150 150 150