Based on the following Statement of Cash Flows for Matthauson Company, evaluate how effectively management is using cash flows. Provide a thorough summary including a discussion of each activity, operating, investing, and financing, as well as overall changes to the cash balance and how the cash flow affects this company?s business decisions.

Cash Flows From Operating Activities: Cash Collected from Customers Cash Paid to Employees Cash Paid to Suppliers" Cash Paid for Interest Cash Paid for Taxes Net Cash Provided by Operating Activities $37,000 Cash Flows From Investing Activities: Proceeds from sale of equipment Purchase of equipment Net Cash Used by Investing Activities Cash Flows From Financing Activities: $940,000 (200,000) (670,000) (3,000) Dividends paid Bonds payable paid Sale of common stock (30,000) $3,000 (220,000) ($217,000) ($70,000) (50,000) 250,000 Net Cash Provided by Financing Activities $130.000 Decrease in Cash ($50,000)