Writing $(Cash$ Flow Analysis$)$ The partner $in$ charge $of$ the Kappeler Corporation audit comes $by$ your desk and leaves a letter $he$ has started $to$ the CEO and a copy $of$ the cash flow statement for the year ended December $31,2025.$ Because $he$ must leave $onan$ emergency, $he$ asks you $to$ finish the letter $by$ explaining: $(1)$ the disparity between net income and cash flow, $(2)$ the importance $of$ operating cash flow, $(3)$ the renewable source$(s)of$ cash flow, and $(4)$ possible suggestions $to$ improve the cash position.

Date

President Kappeler, CEO

Kappeler Corporation

$125$ Wall Street

Middleton, Kansas $67458$

Dear $Mr.$ Kappeler:

I have good news and bad news about the financial statements for the year ended December $31,2025.$ The good news $is$ that net income $of$ $$100,000is$ close $to$ what $we$ predicted $in$ the strategic plan last year, indicating strong performance this year. The bad noses $is$ that $we$ cash balance $is$ seriously low. Enclosed $is$ the Statement $of$ Cash Flows, which best illustrates how both $of$ these situations occurred simultaneously...

Instructions

Complete the letter $to$ the CEO, including the four components requested $by$ your boss.