would you expect wood way rsquo s cash balance at the end of 2000 to be higher or lo 582106

Interpreting Financial Statements: Cash Flow Effects

Wood way Company reported the following data in its 2000 statement of cash flows (dollars in thousands):

Required

a. What are some likely explanations for the trend in cash provided by operating activities relative to the trend in net earnings?

b. Would you expect Wood way’s cash balance at the end of 2000 to be higher or lower than that at the end of 1999? Why? What other information would you need before drawing definitive conclusions in this regard?