Table 4 presents Eco-Products statement of cash flows for 2007. Was the firm build-ing or burning cash in its operating activities? When also considering cash flows from investing activities, was Eco-Products in a net cash build or burn position in 2007? F. Describe the early rounds of financing that occurred from Eco-Products inception in 1990 through 2006. Beginning in 2007, the need for external financing began to increase. Describe the sources, amounts, and types of financing obtained during 2007 and the early part of 2008.

Table 4 Consolidated Statements of Cash Flow for Year Ended December 31, 2007 2007 Cash flows from operating activities: Net income (loss) Adjustments to reconcile net income (loss) to net cash used in operating activities Depreciation and amortization Stock-based compensation Deferred income tax Provision for bad debt (Increase) decrease in assets: Accounts receivable Inventory Prepaid expenses and other assets Income tax receivable Deposits Increase (decrease) in liabilities Accounts payable Accrued payroll and payroll taxes Accrued vacation Other current liabilities Deferred lease liability Deferred revenue Net cash used in operating activities Cash flows used in investing activities: Purchase of property, equipment, and intangible assets Cash flows from financing activities: Payments on term-debt and capital leases Loan proceeds Payment of loan fees Net change in lines of credit Issuance of common stock Issuance of preferred stock Payments on loan from stockholder Loan from shareholder Net cash provided by financing activities Net increase (decrease) in cash Cash balance, beginning of year Cash balance, end of year Supplemental disclosures Interest paid Income tax paid Non-cash activities Purchased equipment acquired through financing \$ (36,199) 87,563 (965,683) (1,553,188) (589,743) (64,260) (10,000) 44,800 39,356 3,966 16,913 105,588 (2,891,887) (356,745) (198,329) 150,000 1,826,266 1,303,700 93,394 3,175,031 (73,601) 125,268 S 51,667 S 186,726 S 11,984 S 175,245