The CEO and CFO from Lawrence Hotels, Inc., are reviewing company performance for 2021. The income statement reports a 25% increase in net income over 2020. However, most of the increase resulted from a gain on insurance proceeds from fire damage to a building. The balance sheet shows a large increase in receivables. The cash flows statement, in summarized form, reports the following:

Write a memo giving Lawrence’s top executives your assessment of 2021 operations and your outlook for the future. Focus on the information content of the cash flow data.

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Net cash used for operating activities.........….….. Net cash provided by investing activities............ Net cash provided by financing activities Increase in cash during 2021.. $(53,700) 39,300 17,500 $ 3,100