• According to Sally's cash flow statement, how well would you say Sally is managing her company? Explain your decision.
• Based on Sally's cash balance at the end of March, what are the key transactions that allowed her cash flow to increase so much?
• What would you recommend that Sally do to continue the growth of her business?

below are the cash flow statements for January, february, and march

\begin{tabular}{|l|l|} \hline \multicolumn{1}{|c|}{ January } & \multicolumn{2}{c|}{ Mebruary } & March \\ \hline \multicolumn{1}{|c|}{ Income Taxes Payable } & $500 \\ \hline Cash flows provided by operating activities & $4,700 \\ \hline Cash flows from investing activities & \\ \hline Purchase of investment & ($5,000) \\ \hline Cash flows provided by (used in) investing activities & ($5,000) \\ \hline & \\ \hline Net increase (decrease) in cash & ($300) \\ \hline Cash, beginning of month & $7,200 \\ \hline Cash, end of month & ($300) \\ \hline \end{tabular} January February March Sally's Salon Cash Flow Statement for February Cash flows from operating activities Net income $9,000 Depreciation expense $2,000 Changes in current assets and current liabilities: Inventory ($2,000) Accounts Payable ($1,000) Wages Payable ($2,000) Income Taxes Payable $500 \begin{tabular}{|l|l|} \hline \multicolumn{1}{|c|}{ January } & \multicolumn{2}{c|}{ February } & March \\ \hline \multicolumn{1}{|c|}{ Sally's Salon Cash Flow Statement for March } \\ \hline Cash flows from operating activities & \\ \hline Net income & $16,800 \\ \hline Depreciation expense & $2,000 \\ \hline Changes in current assets and current liabilities: & \\ \hline Inventory & (3,000) \\ \hline Accounts Payable & ($1,500) \\ \hline Wages Payable & ($2,500) \\ \hline Income Taxes Payable & $500 \\ \hline \end{tabular} \begin{tabular}{|l|l|} \hline \multicolumn{1}{|c|}{ January } & \multicolumn{2}{c|}{ Mebruary } & \multicolumn{1}{c|}{ March } \\ \hline \multicolumn{1}{|c|}{ Income Taxes Payable } & $500 \\ \hline Cash flows provided by operating activities & $12,300 \\ \hline Cash flows from investing activities & \\ \hline Purchase of investment & ($5,000) \\ \hline Cash flows provided by (used in) investing activities & ($5,000) \\ \hline & \\ \hline Net increase (decrease) in cash & $7,300 \\ \hline Cash, beginning of month & $3,200 \\ \hline Cash, end of month & $10,500 \\ \hline \end{tabular}