AP5-13B (Interpreting statement of cash flows) The following are the comparative statements of cash flows for Italian Fine Leather Goods Incorporated (IFLG). ITALIAN FINE LEATHER GOODS INCORPORATED Statements of Cash Flows (in thousands) 2020 2019 2018 Operating activities S(19,869) S(9,389) $1,916 Net income (loss) Adjustments for: Depreciation expense Loss on sale of equipment Effect of changes in working capital items 5,489 3,210 4,308 663 3,561 327 Accounts receivable Inventory 119 202 230 (263) 1,089 193 (680) 2,081 (53) Prepaid expenses Accounts payable Interest paid Interest received (2,181) (1,752) (81) 107 21 133 _3,541 _(183) _(,319) (5,094) (60) (12) 244 (664) 6,660 Income taxes (paid) recovered Net cash inflow from operations Investing activities Acquisition of property and equipment Acquisition of computer software Net cash outflow for investing activities Financing activities (2,728) (4,972) (4,500) _(446) (1,107) _(829) _(3,174) (6,079) (5,329) Increase in bank loan Repayment of bank loan 5,284 (2,900) 0 Issuance of common shares 0 0 0 0 227 183 _(275) (11,400 _(48) (11,217) Repurchase of common shares Net cash inflow from financing activities 2,384 Overall increase (decrease) in cash Cash position at beginning of year (10,109) (11,221) (9,886) 13,225 24,446 34,332 S 3,116 $13,225 $24,446 Cash position at end of year Required a. Discuss the company's ability to meet its non-operating needs for cash over these three years, and comment on the continuing nature of the major items that have appeared over this period. b. Comment on the changes in IFLG's accounts receivable, accounts payable, and inventory levels over these three years. c. How did the company finance its repayment of long-term debt and its acquisition of property, plant, and equipment in 2020? d. Describe how the company's mix of long-term financing has changed during this three-year period, in terms of the proportion of debt versus equity. (Hint: Start by calculating the total amount of the increase or decrease in long-term debt and comparing it with the total amount of the increase or decrease in shareholders' equity.)