@MoveWithPeace@TheOgbonna the statement of cash flow is not enough, cash flow shows liquidity which is secondary in going concern, the primary factor is solvency and hence the balance sheet is more relevant
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@moneybag01714 So here, with the cash balance we can deduce that majority of company's A sale was made in credit or as a result of an income whose receipt is deferred, putting it in a tight financial position compared to B
@moneybag01714 Since we are talking about "stronger financial position" then it's company B.
Why? Company B is more liquid.
And this brings back the concept of solvency vs liquidity.
A company can be solvent (has enough asset to it's liability) but not liquid