CHARMAINE RETAILERS LTD. Statement of Cash Flows-Indirect Method Year Ended December 31, 2018 Operating activities Net income $62,000 Adjustments to reconcile net income to net cash provided (used) by operating activities Depreciation expense $21,000 Increase in accounts receivable (8,000) Increase in inventory (25,000) Increase in accounts payable 10,000 (2,000) Net cash provided by operating activities 60,000 Investing activities Purchase of furniture $(83,000) Net cash used by investing activities (83,000) Financing activities Increase in bank loans $37,000 Repayment of bank loan (10,000) Issue of common shares 5,000 Net cash provided by financing activities 32,000 Net increase in cash 9,000 Cash, January 1 9,000 Cash, December 31 $18,000 (b) Assess the strength of the company's cash flows for that year