Dear all , can you help me ? I need the answer of this question now . thank you so much for ypur help dear

1. Mr. SAMBAT, president of RSC Company, considers $12,000 to be the minimum cash balance for operating purposes. As can be seen from the statement of cash flows below, only $8,000 in cash was available at the end of 2019 . Since the company reported a large net income for the year, the sharp decline in cash. RSC Company Statement of Cash Flows For the Year Ended December 31, 2019 Operating activities: Net income $30,000 Adjustments needed to convert net income to a cash basis: Depreciation expense. 20,000 Increase in accounts receivable. (40,000) Increase in inventory (50,000) Decrease in prepaid expenses. 4,000 Increase in accounts payable. 63,000 Decrease in accrued liabilities. (9,000) Gain on sale of investments. (10,000) Loss on sale of equipment. 2,000 Increase in deferred income taxes. 8,000 Net cash provided by operating activities 18,000 Investing activities: Proceeds from sale investments. Proceeds from sale of equipment. Additions to plant and equipment Net cash used for investing activities. Financing activities: Increase in bonds payable. Increase in common stock. Cash dividends. Net cash provided by financing activities Net decrease in cash Cash balance, January 1, 2019. Cash balance, December 31, 2019 $30,000 8,000 (150,000) (112,000) 70,000 20,000 (9,000) (13,000) 21,000 $8,000 Required: Explain to the president the major reasons for the decline in the company's cash position and how to remedy this condition