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hi can you please help me solve part 4,6 and 7. Thanks Big Rock Brewery Inc. Big Rock Brewery Inc is a leading Canadian eraft
hi can you please help me solve part 4,6 and 7. Thanks
Big Rock Brewery Inc. Big Rock Brewery Inc is a leading Canadian eraft brewer that produces premium, all-natural craft beers. Its statements of cash flows for fiscal years 2018, 2017 and 2016 are shown below PR 305 BIG ROCK BREWERY INC. Consolidated Statements of Cash Flows For the Years Ended December 30 (in thosands of Canadian dollars) 2018 2017 2016 OPERATING ACTIVITIES Net income (loss) for the year 360 S (1,020) $ (453) Items not affecting cash Depreciation and amortization 3.201 2.942 2.559 Loss (pain) on sale of assets (29) 20 (65) $ Share based payments 68 459 385 Lease incentive 32 42 5 Amortized debt issue costs 13 6 Deferred income tax expense (recovery) 333 (173) 233 Deferred income tax expense (recovery) 311 (173) 213 (220) (352) 927 (418) 158 (209) (119) 41 145 Change in non-cash working capital related to operations Accounts receivable Inventory Prepaid expenses Accounts payable and accrued liabilities Income taxes payable Share-based payment liabilities Cash provided by operating activities 1.209 (464) 67 197 (160) (51) 85) (19) 4,608 3,541 (330) (323) 1.000 2.467 FINANCING ACTIVITIES Repayment of finance lease Proceeds from long term debt Increase (decrease in bank indebtedness Repayment of long-term det Proceeds from issuance of shares 79 1.592 (2,759 (352) (403) (355) 583 (654) Cash provided by used in financing activities (1.851) 3,708 INVESTING ACTIVITIES 5 (1.690) (7.691 (2013) (348) (36) (991) 2.479 141 143 (2.220) 398 (7.584) Purchase of property, plant, and equipment Purchase of intangibles Proceeds from sale of property, plant, and equipment Cash provided by (used in) mesting activities Net increase (decrease) in cash Cash, beginning of year Cash, end of year Supplemental cash-tlow information: Interest pold 1,734 (39) (333) 168 207 $40 $ 1,902 s 168 S 207 $314 727 $ 357 11 Taxes paid (recovered) (226) 57 Required The cash flows from operating activities show that depreciation and amortization are added to net incomic (loss) for the year is depreciation and amortization a source of cush? Explain. 2. Was the cash collected from customery during tscal year 2018 higher or lower than Big Rock's sales revenue for that year? Explain J. 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, cupital 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 condusion can you draw from the changing pattern of cash flows Explain 6Obtain a copy of Big Rock's statement of cash flows for the year 2019 through the company's website (www.bigrockheet.com Page 106 or the SEDAR service (www.sedar.com Did the company's 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 share? Big Rock Brewery Inc. Big Rock Brewery Inc is a leading Canadian eraft brewer that produces premium, all-natural craft beers. Its statements of cash flows for fiscal years 2018, 2017 and 2016 are shown below PR 305 BIG ROCK BREWERY INC. Consolidated Statements of Cash Flows For the Years Ended December 30 (in thosands of Canadian dollars) 2018 2017 2016 OPERATING ACTIVITIES Net income (loss) for the year 360 S (1,020) $ (453) Items not affecting cash Depreciation and amortization 3.201 2.942 2.559 Loss (pain) on sale of assets (29) 20 (65) $ Share based payments 68 459 385 Lease incentive 32 42 5 Amortized debt issue costs 13 6 Deferred income tax expense (recovery) 333 (173) 233 Deferred income tax expense (recovery) 311 (173) 213 (220) (352) 927 (418) 158 (209) (119) 41 145 Change in non-cash working capital related to operations Accounts receivable Inventory Prepaid expenses Accounts payable and accrued liabilities Income taxes payable Share-based payment liabilities Cash provided by operating activities 1.209 (464) 67 197 (160) (51) 85) (19) 4,608 3,541 (330) (323) 1.000 2.467 FINANCING ACTIVITIES Repayment of finance lease Proceeds from long term debt Increase (decrease in bank indebtedness Repayment of long-term det Proceeds from issuance of shares 79 1.592 (2,759 (352) (403) (355) 583 (654) Cash provided by used in financing activities (1.851) 3,708 INVESTING ACTIVITIES 5 (1.690) (7.691 (2013) (348) (36) (991) 2.479 141 143 (2.220) 398 (7.584) Purchase of property, plant, and equipment Purchase of intangibles Proceeds from sale of property, plant, and equipment Cash provided by (used in) mesting activities Net increase (decrease) in cash Cash, beginning of year Cash, end of year Supplemental cash-tlow information: Interest pold 1,734 (39) (333) 168 207 $40 $ 1,902 s 168 S 207 $314 727 $ 357 11 Taxes paid (recovered) (226) 57 Required The cash flows from operating activities show that depreciation and amortization are added to net incomic (loss) for the year is depreciation and amortization a source of cush? Explain. 2. Was the cash collected from customery during tscal year 2018 higher or lower than Big Rock's sales revenue for that year? Explain J. 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, cupital 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 condusion can you draw from the changing pattern of cash flows Explain 6Obtain a copy of Big Rock's statement of cash flows for the year 2019 through the company's website (www.bigrockheet.com Page 106 or the SEDAR service (www.sedar.com Did the company's 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 share Step by Step Solution
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