1 & 2: inflow/outflow

3: invests in new/ sells old

4: invests in new assets/ net income/ positive cash flow

5 & 6: negative/postive

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 incron suited from a gain on insurance proceeds from frodamago to a building. The balance shoot shows a large increase in receivables. The cash flows statement, in summarized form. reports the Following en click the icon to view the cash fow statement.) Who a remo giving Lawrence's top executives your assessment of 2018 operations and your autlook for the future. Focus on the Information content of the cash flows data To Managers of Lawrence Hotels in Subject Assessment of 2018 and Outlook for the Future 2018 was not a good yeae. Most of the increase in net income resulted from the gain on the insurance proceeds from fire damage to a building, which means that normal operations were not very pro table. This in confirmed by the increase in receivables, which hints that collections are lagging The cash flow data paint a similar picture Operating activities used cath, which is bad news Over the long run, operations should provide the bulk of the cash if the business expects to Succeed During 2018, the insurance recovery helped investing activities produce a net cash Ordinarily, investing activities should produce net cash as the business Growin is usually indicated by but during 2018 net cash flows from investing activities were which means that not investments were