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A cash flow statement is defined as the financial statement presenting the inflow and outflow of cash and its relatable equivalents during the year.

The statement of cash flow of Show cinema is better than the Theatre by design because of the following reason:

Operating Activities:

The cash provided by operating activities is one of the key indicators, and the company which is generating more cash from operating activities will have enough cash in hand for future operations. In this case, the Show Cinemas has better cash from operations than the Theatre by designs.

Investing activities:

The company which is investing more in plant assets means the company is expanding its operations; in this case, the Show cinemas are buying plant assets, but on the other hand, Theatre by design is selling their plant assets.

Financing Activities:

By issuing common stock, common stock companies raise cash to fund their future operations, increasing the availability of cash with the companies. In this case, Show Cinemas are raising capital by issuing common stock.