Now that you have begun studying accountancy, it seems as though everyone is coming to you for advice. Yesterday, your mother's friend Juanita asked you to explain what she'd read in the notes to recent financial statements of Simmons Department Stores: 'In 20X2, the Business generated \(\$ 199.1\) million in cash from operating activities, as compared to \(\$ 295.3\) million in \(20 \mathrm{Xl}\) and \(\$ 214.5\) million in 20X0. The primary reason for the decrease [this year] was an increase in merchandise inventories.' Since you didn't have time to explain it then or to get your thoughts together, you asked Juanita if you could email her an explanation.

Required:

Write Juanita that email, being careful to use language she can understand as she has never studied accounting.