Using a cash flow statement, explain why ultra Cable Corporation's cash balance has declined so precipitously this past year.

I looked for Cable Corporation's income statement and balance sheet:

Cable Corporation

Statement of cash flows

For the year ended December 31, 202x

Cash flows from operating activities:

Net income                                                                       $357,750

Adjustments to net income:

Net cash provided by operating activities                    ($570,875)

Cash flows from investing activities:

Purchase of fixed assets                                             ($1,975,000)

Net cash provided by investing activities                  ($1,975,000)

Cash flows from financing activities:

Issuance of long term debt                                         $2,565,700

Dividends paid                                                               ($107,325)

Net cash provided by financing activities                  $2,458,375

Net decrease in cash                                                     ($87,500)

Cash balance at beginning of the year                        $100,000

Cash balance at the end of the year                              $12,500

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