The CEO of Home Store was concerned about the company's drop in cash from $130,000 at the beginning of the year to $32,000 at the end of the year. The $98,000 decrease in cash came primarily from the purchase of a forklift, which was paid in cash rather than being financed.

1. Explain why a small increase in cash from operating activities might be more concerning to investors than a large decrease in cash from investing or financing activities. (11.2)