Avery Slings & Arrows is a company dealing with recycling of the plastic bottles.The board has approeached you as a financial analysist to help them analyse their liquidity status. Below is the cashflow statement of the company for the financial year 31st Dec 2017 Avery Slings & Arrows Statement of Cash Flows For year ended December 31, 2017 Inflows Outflows Net Cash provided by operations Cash collected from customers 6,508,000 Interest & dividends received 44,000 Cash paid for merchandise (3,495,000) Cash paid to employees (635,000) Other operating disbursements (375,000) Interest paid (848,000) Income taxes paid (117,000) 6,552,000 (5,470,000) 1,082,000 Cash provided by investing activities Proceeds from sale of equipment 59,000 Cash outlay to acquire equipment (2,767,000) Cash outlay to acquire patent (500,000) Proceeds from sale of securities 275,000 Cash outlay to buy securities (273,000) 334,000 (3,540,000) (3,206,000) Cash provided by financing activities Dividends paid (135,000) Sold treasury stock 23,000 Purchased treasury stock (38,000) Payments on long term debt (2,000,000) Payments on capital leases (365,000) Common stock issued 1,050,000 Proceeds from issuing nonconvertible bonds 3,000,000 4,073,000 (2,538,000) 1,535,000 Change in cash (589,000) Beginning balance Cash 2,850,000 Ending balance Cash 2,261,000 Required: a) Assess the cash position of the company and point out how the companys stage in its life cycle has a bearing in such cash position (4 marks) b) The statement of cashflows is perhaps the most relevant financial statement to investors analysis. (6 marks)