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III. Statement of cash flows for AZ, Inc. contained the following amount at the end of Year 3: AZ, Inc. Statement of Cash Flows The end of Year 3 Cash flows from operating activities: Net income $23,450 Net increase in accounts receivable (1,800) Depreciation expense 8,000 Net change in inventory 2,675 Net change in accounts payable (890) Net cash from operations $31,435 Cash flows from investing activities: Cash received from sale of studio $6,235 equipment Net cash from investing activities 6035 Cash flows from financing activities Cash received from loan $9,000 Cash paid for dividends (625) Cash paid for treasury stock (3,780) Net cash from financing activities 4,595 Net increase in cash $42.265 Required: Prepare a brief explanation as to why cash increased during the year