Consider the following data for three different companies:
| |
|
($000 Omitted)
|
|
|
Owens
|
Arrow
|
Alpha
|
|
Net cash provided (used) by: Operating activities
|
$(2,000)
|
$2,700
|
$(3,000)
|
|
Investing activities
|
(6,000)
|
(600)
|
(400)
|
|
Financing activities
|
9,000
|
(400)
|
(2,600)
|
|
Net increase (decrease) in cash
|
$ 1,000
|
$1,700
|
$(6,000)
|
The patterns of cash flows for these firms differ. One firm is a growth firm that is expanding rapidly, another firm is in danger of bankruptcy, while another firm is an older firm that is expanding slowly.
Required:
Select the growth firm, the firm in danger of bankruptcy, and the firm that is the older firm expanding slowly. Explain your selection.