Graffiti Advertising, Inc., reported the following financial statements for the last two years.

2016 Income Statement
Sales	$	573,200
Costs of goods sold		273,945
Selling and administrative		124,717
Depreciation		54,560
EBIT	$	119,978
Interest		19,648
EBT	$	100,330
Taxes		40,132
Net income	$	60,198
Dividends	$	11,200
Addition to retained earnings	$	48,998

GRAFFITI ADVERTISING, INC. Balance Sheet as of December 31, 2015
Cash	$	13,480		Accounts payable	$	9,488
Accounts receivable		18,978		Notes payable		14,492
Inventory		13,810		Current liabilities	$	23,980
Current assets	$	46,268
				Long-term debt	$	135,520
Net fixed assets	$	344,906		Owner's equity	$	231,674
Total assets	$	391,174		Total liabilities and owners equity	$	391,174

GRAFFITI ADVERTISING, INC. Balance Sheet as of December 31, 2016
Cash	$	14,466		Accounts payable	$	10,528
Accounts receivable		21,083		Notes payable		16,482
Inventory		22,770		Current liabilities	$	27,010
Current assets	$	58,319
				Long-term debt	$	153,600
Net fixed assets	$	406,295		Owner's equity	$	284,004
Total assets	$	464,614		Total liabilities and owners equity	$	464,614

Operating cash flow $ 134,406 .1% Change in net working capital $ 9,021 .1% Net capital spending $ 115,949 .1% Cash flow from assets $ 9,436 .1% Cash flow to creditors $ 1,568 .1% Cash flow to stockholders $ 7,868 .1%

Question: Graffiti's Net Income for 2015 was $40,000. What evidence does the cash flow analysis provide to help you decide if Graffiti is a good company to invest in? (Hint: Is there evidence the firm is investing effectively in new projects? Is it paying lenders back? Are shareholders being paid a dividend? New projects are measured by increases/decreases in Net Fixed Assets. "Investing effectively" is measured by whether Net Income increased or decreased from 2015.)