The following data are based on information in the 2010 annual reports of H&R Block, Inc. , and Jackson Hewitt Tax Services, Inc. Dollar amounts are in thousands.
H&R Block, Inc., has subsidiaries that provide tax, investment, retail banking, accounting, and business consulting services and products in the United States, Canada, and Australia. For the fiscal year ended June 30, 2010, the company served approximately 23.2 million customers. In the fiscal year ended April 30, 2010, Jackson Hewitt Tax Services, Inc., had a network of 6,407 franchised and company owned offices that provided computerized preparation of individual income tax returns in the United States. These offices prepared 2.53 million tax returns.
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Required:
a. Calculate each company's net income and net change in cash for 2010.
b. Calculate each company's ending cash balance for 2010.
c. Notice that cash flows from investing activities were negative for Jackson Hewitt. Do you think this represents something positive or negative about the company? Write a brief explanation of your answer.
d. Notice that cash flows from financing activities were negative for H&R Block. Write a brief explanation as to what might have caused this.