STATEMENT OF CASH FLOWS
Cash flow from operating activities:
Net income		$ 170,000
Adjustments to reconcile net income with cash from operating activitites:
Depreciation (810000-755000+40000)	$ 95,000
Loss from sale of equipment	$ 20,000
Gain on sale of investments	$ (60,000)
Increase in accounts receivable (710000-530000)	$(180,000)
Decrease in inventory = 860000-848000 =	$ 12,000
Increase in prepaid expenses (10000-5000)	$ (5,000)
Increase in accounts payable (970000-670000)	$ 300,000
Decrease in accrued liabilities (82000-65000)	$ (17,000)
Increase in income tax payable (95000-80000)	$ 15,000	$ 180,000
Net cash from operating activitites		$ 350,000
Cahs flow from investing activities:
Sale of equipment	$ 70,000
Loan to subsidiary (214000-170000)	$ (44,000)
Purchase of investments	$ 110,000
PPE purchased (3170000-2600000+130000)	$(700,000)
Net cash used by investing activities		$(564,000)
Cash flow from financing activities;
Common stock sold=1740000-1650000)	$ 90,000
Cash dividends paid (478000+170000-573000)	$ (75,000)
Redemption of bonds	$(350,000)
Issue of new bonds	$ 570,000
Net cash from financing activities		$ 235,000
Increase in cash and cash equivalents		$ 21,000
Beginning cash and cash equivalents		$ 40,000
Ending cash and cash equivalents		$ 61,000

What problems relating to the company's activities are revealed by the statement of cash flows?