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) Increase in prepaid expenses (5,500) Decrease in accounts payable (4.600) Cash from operating activities $(29,600) 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) 49,500 Cash from financing activities Decrease in cash Cash balance, November 1, 2019 (63,100) 58.000 $ (5.100) Cash balance, October 31, 2020 Required: Answer the following questions: The Cash flow to total liabilities ratio is: (Enter to two 3 decimal places) The Net free cash flow is $ Based on your evaluation, Strategema Inc. The Statement of Cash Flows suggests that Strategema Inc. is Based on the the following items: Strategema Inc.'s management and + business. optimistic about the future. Provide four recommendations to Strategema Inc.'s management to improve cash flow: Based on your evaluation, Strategema Inc. is a profitable The Statement of Cash Flows suggests that is not a profitable business. Based on the the following items: Proceeds from sale of temporary investments Increase in accounts receivable Stra Decrease in accounts payable Depreciation Proceeds from issue of common shares Increase in prepaid expenses Base Payment of cash dividends Prov Net income Increase in inventory Purchase of equipment and optin 's managem Based on the the following items: Stra Purchase of equipment Base Increase in prepaid expenses Depreciation Proceeds from sale of temporary investments Increase in inventory Payment of cash dividends Net income Prov Proceeds from issue of common shares Decrease in accounts payable Increase in accounts receivable and .'s ma Strategema Inc.'s management Appears to be Based on the information provi Does not appear to be optimistic about the future. a loan to Strategema Based on the information provided, you should a loan to Strategema Inc. Approve Provide four recommendations to Strategema I Not approve ht to improve cash flow: page Based on the information provided, you should a lo Provide four recommendations to Strategema Inc.'s management to improve cash Keep paying dividends to shareholders Offer customers discounts on bulk purchases Pay accounts payable faster Delay payments to suppliers Sell some equipment Apply for more credit from suppliers Purchase more equipment Depreciate assets faster Issue bonds Pay more expenses in advance Offer early payment discounts to customers Purchase temporary investments