Below is the Statement of Cash Flows for Strategema Inc. They have just finished their second year of operation and have approached you, the manager of the local branch of BanCo Financial, to approve loan financing. In addition to the cash flow statement provided, Strategema's total liabilities at October 31, 2020 were $150,000. STRATEGEMA INC. Statement of Cash Flows For the Year Ended October 31, 2020 Cash flows from operating activities: Net income Add: Depreciation Less: Increase in accounts receivable Increase in inventory $ 45,000 24,500 (18,000) (71,000) (5,500) (4,600) $(29,600) Increase in prepaid expenses Decrease in accounts payable Cash from operating activities Cash flows from investing activities: Proceeds from sale of temporary investments 12,000 Purchase of equipment (95,000) Cash for investing activities (83,000) Cash flows from financing activities: Proceeds from issue of common shares 75,000 Payment of cash dividends (25,500) Cash from financing activities 49.500 Decrease in cash (63,100) Cash balance, November 1, 2019 58.000 Cash balance, October 31, 2020 $ (5.100) Required: Answer the following questions: