Use the Indigo Books & Music Inc.’s Consolidated Statements of Cash Flow which appear in Appendix A at the end of this book and on MyLab Accounting to answer the following questions:

1. Which method does Indigo use to report net cash flows from operations? How can you tell?

2. Did Indigo improve its cash position in the year ended April 1, 2017? If so, by how much? If not, by how much did it decline? 

3. By how much did Indigo’s cash from operations increase or decrease in the year ended April 1, 2017 versus 2016? Why is it important for cash from operating activities to be a positive number?

4. What were the major investing activities during fiscal 2017? Financing activities?

5. Was Indigo expanding or contracting in fiscal 2017? Support your answer with specific references to the financial statements.