Question: Please use the following information to answer the next question: For BB Incorporated: Cash Flows from Assets -------------------------------------------------------------------- 100 dollars EBIT (from 1999 INCOME STATEMENT)

Please use the following information to answer the next question:

For BB Incorporated:

Cash Flows from Assets -------------------------------------------------------------------- 100 dollars EBIT (from 1999 INCOME STATEMENT) -------------------------------------------0 dollars Depreciation Expense (from 1999 INCOME STATEMENT) ---------------------- 0 dollars Taxes (from 1999 INCOME STATEMENT) ------------------------------------------ 0 Net Fixed Assets from BALANCE SHEET dated December 31, 1998-------------1400 dollars Net Fixed Assets from BALANCE SHEET dated December 31, 1999------------ 1300 dollars Additions to (Changes in) NWC for 1999 ---------------------------------------------- 0 dollars

For KK Incorporated:

Cash Flows from Assets ---------------------------------------------------------------------0 dollars EBIT (from 1999 INCOME STATEMENT) -------------------------------------------500 dollars Depreciation Expense (from 1999 INCOME STATEMENT) ----------------------100 dollars Taxes (from 1999 INCOME STATEMENT) ------------------------------------------100 Net Fixed Assets from BALANCE SHEET dated December 31, 1998------------1400 dollars Net Fixed Assets from BALANCE SHEET dated December 31, 1999------------1800 dollars Additions to (Changes in) NWC for 1999 ----------------------------------------------0 dollars

For LL Incorporated:

Cash Flows from Assets --------------------------------------------------------------------100 dollars EBIT (from 1999 INCOME STATEMENT) -------------------------------------------0 dollars Depreciation Expense (from 1999 INCOME STATEMENT) ----------------------100 dollars Taxes (from 1999 INCOME STATEMENT) -------------------------------------------0 Net Fixed Assets from BALANCE SHEET dated December 31, 1998-------------1400 dollars Net Fixed Assets from BALANCE SHEET dated December 31, 1999-------------1300 dollars Additions to (Changes in) NWC for 1999 -----------------------------------------------0 dollars

*Based only on the numbers provided, which Company is doing the BEST? *In other words, if you were an individual investor, in which Company would you invest?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!