The CEO and CFO from Jolson Hotels, Inc., are reviewing company performance for 2016. The income statement

Question:

The CEO and CFO from Jolson Hotels, Inc., are reviewing company performance for 2016. The income statement reports a 20% increase in net income over 2015. However, most of the increase resulted from a gain on insurance proceeds from fire damage to a building. The shows a large increase in receivables. The cash flows statement, in summarized form, reports the following:
Net cash used for operating activities............... $(63,500)
Net cash provided by investing activities........... 42,000
Net cash provided by financing activities.......... 29,100
Increase in cash during 2016......................... $ 7,600
Write a memo giving Jolson Hotels' top executives your assessment of 2016 operations and your outlook for the future. Focus on the information content of the cash flows data.
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...