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The CEO and CFO from Lawrence Hotels, Inc, are reviewing corrpany performance for 2021 . The income statement reports a 25% increase in net income
The CEO and CFO from Lawrence Hotels, Inc, are reviewing corrpany performance for 2021 . The income statement reports a 25% increase in net income over 2020 . However, most of the increase resulted from a gain on insurance proceeds from fire damage to a bulling. The batance sheet shows a targe increase in recetraties. The cash fowis statement, in summarized form, reports the following: Ifl (Click the ioon to view the cash flow statement) Write a memo giving Lawrence's top executves your assessment of 2021 operasons and your outiook for the future. Focus on the inlormation content of the cash fows data. To: Managers of Lawtence Hotels, Inc: Subject: Assessment of 2021 and Outicok for the Future 2021 was year, Most of the increase in net income resulted from the gain on the insurance proceeds from fire damage to a bulding, which means that normal operations This is confirmed by the increase in recelvables, which hints that During 2021, the insurance recovery helped investing activites produce a net cash as the business assets. Growth is usually indicated by , but during 2021 net cash fows from investing activities were Which means thut net investments were Financing activities provided a net cash , which is However, if the cash provided by financing activites is from debt, the addaional debt to repay since operating activites If things remsin the same in coming years, the outlook for the company is
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