-5,5-6 Using Financial Reports: Analyzing the Statement of Cash Flows of Big Rock Brewery Inc. CP5-4 Big Rock Brewery Inc. is a leading Canadian craft brewer that produces premium, all-natural craft beers. Its statements of cash flows for fiscal years 2018, 2017, and 2016 are shown below: Required: 1. The cash flows from operating activities show that depreciation and amortization are added to net income (loss) for the year. Is depreciation and amortization a source of cash? Explain. 2. Was the cash collected from customers during fiscal year 2018 higher or lower than Big Rock's sales revenue for that year? Explain. 3. Did Big Rock expand during 2017 and 2018? If so, how did the company pay for its expansion? Explain. 4. Compute and analyze Big Rock's quality of earnings ratio, capital expenditures ratio, and free cash flow for 2017 and 2018. 5. Analyze the company's pattern of cash flows from operating, investing, and financing activities over the three years. What conclusion can you draw from the changing pattern of cash flows? Explain. CHAPTER 5 Statement of Cash Flows 6. Obtain a copy of Big Rock's statement of cash flows for the year 2019 through the companys website (www.bigrockbeer.com) or the SEDAR service (www.sedar.com). Did the companys cash flow situation in 2019 improve or deteriorate relative to previous years? Explain. 7. As a potential investor in Big Rock's shares, what additional information would you need before making your decision as to whether or not to invest in this company's shares