ollowing information on its CP 14-4 Analysis of cash flow from operations The Commercial Division of Tidewater Inc. provided the following informat cash flow from operations: $ 945,000 Net income (1,134,000) Increase in accounts receivable Increase in inventory (1,260,000) Decrease in accounts payable (189,000) Depreciation 210,000 Cash flow from operating activities $(1,428,000) The manager of the Commercial Division provided the accompanying memo with this report: From: Senior Vice President, Commercial Division I am pleased to report that we had earnings of $945,000 over the last period. This resulted in a return on invested capital of 8%, which is near our targets for this division. I have been aggressive in building the revenue volume in the division. As a result, I am happy to report that we have increased the number of new credit card customers as a result of an aggressive marketing campaign. In addition, we have found some excellent merchandise opportun ties. Some of our suppliers have made some of their apparel merchandise available at a deep discount. We have purchased as much of these goods as possible in order to improve profitability. I'm also happy to report that vendor payment problems have improved. We are nearly caught up on our overdue payables balances Comment on the senior vice president's memo in light of the case information