Top managers of LTV Broadcasting, Inc., are reviewing company performance for \(19 \mathrm{X} 4\). The income statement reports a 15 -percent increase in net income, the fifth consecutive year with an income increase above 10 percent. The income statement includes a nonrecurring loss without which net income would have increased by 16 percent. The balance sheet shows modest increases in assets, liabilities, and stockholders' equity. The assets posting the largest increases are plant and equipment because the company is halfway through a five-year expansion program. No other assets and no liabilities are increasing dramatically. A summarized version of the cashflow statement reports the following:

\section*{Required}
Write a memo to give top managers of LTV Broadcasting your assessment of \(19 \mathrm{X} 4\) and your outlook for the future. Focus on the information content of the cash-flow data.
Preparing the statement of cash

Transcribed Image Text:

Net cash inflow from operating activities........... Net cash outflow from investing activities..... Net cash inflow from financing activities. Increase in cash during 19X4. $310,000 (290,000) 70,000 $ 90,000