You are evaluating two companies as possible investments. The two companies, similar in size, are commuter airlines that fly passengers up and down the West Coast. All other available information has been analyzed and your investment decision depends on the statement of cash flows.

Requirement
Discuss the relative strengths and weaknesses of Comair and Jetway. Conclude your discussion by recommending one of the companies' shares as an investment?

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Commonwealth Airlines (Comai) Limited Statement of Cash Flows For the Years Ended November 30, 2017 and 2016 2 3 Operating activities: 4 Net income (net loss) 2017 2016 $ (67,000) $ 154,000 ts for non-cash items; Total Net cash provided b 9 Purchase of property, plant, and equipment $ (50,000) Sale of long-term investments 84,000 17,000 (23,000) 131,000 7 erating activities 8 Investing activities: $ (91,000) 4,000 10 52,000 11 Net cash provided by (used for) nvesting activities 2,000 (87,000) 12 Financing activities: 13 Issuance of short-term notes payable 14 Payment of short-term notes payable 15 Payment of cash dividends 16 Net cash used for financing activities 17 Increase (decrease) in cash 18 Cash balance at 19 Cash balance at end of 20 122,000 (179,000) (45,000) 143,000 (134,000) (64,000) (102,000) (83,000) 92,000 $ 9,000 (55,000) (11,000) 103,000 92,000 ning of Jetway Inc. Statement of Cash Flows For the Years Ended November 30, 2017 and 2016 2017 2016 3 Operating activities: $ 184,000 131,000 Adjustments for non-cash items 64,000 248,000 62,000 193,000 activities 8 Investing activities t, and equipment $ 303,000) 46,000 $(453,000 72,000 10 Sale of 11 Net cash used for investing activities 12 Financing activities 13 Issuance of long-term notes payable 14 Payment of short-term notes payable 15 Net cash provided by financing activities 16 Increase (decrease) in cash 17 Cash balance at beginning of 18 Cash balance at end of ant, and equipment (257,000) (381,000) 174,000 (66,000) 118,000 (18,000 108,000 99,000 116,000 215,000 100,000 (88,000) 204,000 5 116,000