Below is a summary of the Innovation Inc.s cash flow for the year.

Cash provided by (used for) operating activities $ 3,000

Cash provided by (used for) investment activities (70,000)

Cash provided by (used for) financing activities 75,000

Net change in cash 8,000

Cash position at the beginning of the year 2,000

Cash position at the end of the year 10,000

Required:

1. Based on your evaluation of their cash flow, would the company most likely be classified as:

1. a growing, start-up company,
2. a healthy, established company, or
3. a company facing financial difficulties. 2. Explain, in a sentence or two, the reasoning for your choice.