Managers of Sew It Seams Repairs are reviewing company performance for 2020. The income statement reports a 16 percent increase in net income, which is excellent. The balance sheet shows modest increases in assets, liabilities, and shareholders’ equity. The assets with the largest increases are plant and equipment because the company is halfway through an expansion program. No other assets and no liabilities are increasing dramatically. A summarized version of the cash flow statement reports the following:

Net cash inflow from operating activities ......... $ 1,240,000
Net cash outflow from investing activities .......... (1,140,000)
Net cash inflow from financing activities ................ 280,000
Increase in cash during 2020 ................................. $ 380,000

Required

Write a memo to give top managers of Sew It Seams Repairs your assessment of 2020 and your outlook for the future. Focus on the information content of the cash flow data.