Top managers of Bernard Associates are reviewing company perfor- mance for 2009. The income statement reports a 15% increase in net income, which is outstanding. The balance sheet shows modest increases in assets, liabilities, and stockholders' equity. The assets with the largest increases are plant and equipment because the company is halfway through an expansion program. No other assets and no liabilities are increasing dramatically. A summarized version of the cash-flow state- ment reports the following:

Requirement 

Write a memo giving top managers of Bernard Associates your assess- ment of 2009 operations and your outlook for the future. Focus on the information content of the cash-flow data.

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Net cash provided by operating activities.......... $310,000 Net cash used for investing activities. Net cash provided by financing activities............. Increase in cash during 2009.... (290,000) 80,000 $100,000