You have been employed for six months in the marketing department at Joe's Transports Ltd. Joe has asked for your advice on how to invest the firm's $100,000 in liquid cash since you are the most recent graduate on staff. He wants to invest in the trucking industry since that is what he understands best. He also feels the economy is improving and trucking industry profits will soar.
He has provided you with the following condensed financial statements for 2010. Healthy Movers does all the moving for its clients while Al's Co-Haul business, although less expensive, expects its clients to move the small items themselves. Healthy's shares sells for $10 per share and Al's shares sells for $2.25 per share on the Toronto Stock Exchange. Healthy's websites indicate that its long-term debt is due in five years. Al's long-term debt is due in six months.

Required:
Recommend which company would make the better investment for Joe.

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Healthy Movers Ltd. Al's Co-Haul Co. Condensed Income Statements for the year ended December 31, 2010 Sales Expenses Net income 550,000 750,000 800,000 700,000 100.000 Healthy Movers Ltd. Al's Co-Haul Co. Condensed Balance Sheet as at December 31, 2010 Current assets Property, plant, and equipment Total assets 75,000 350,000 425,000 140,000 500,000 640,000 Current liabilities Long-term debt Total liabilities 32,000 125,000 157,000 200,000 300,000 500,000 Common shares Retained earnings Total shareholders' equity Total liabilities and shareholders' equity 120,000 148,000 268,000 425,000 50,000 90,000 140,000 640.000