The CEO and CFO from Lawrence Hotels, Inc., are reviewing company performance for 2018. The income statement reports a 25% increase in net income over 2017. 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:

Net cash used for operating activities ...................... $(53,700)
Net cash provided by investing activities ..................... 39,300
Net cash provided by financing activities .................... 17,500
Increase in cash during 2018 ....................................... $ 3,100

Write a memo giving Lawrence’s top executives your assessment of 2018 operations and your outlook for the future. Focus on the information content of the cash flow data.