Killam Inc. operates a growing chain of discount retail stores. In 2014 Killam opened three new stores and now has five in total.

Further expansion is planned for the future. Opening a new store requires significant investment in furniture and fixtures, inventory, advertising and promotion, and staff training. Killam financed the new stores through bank borrowing and equity investment by shareholders.

Required:

What pattern of cash flows would you expect to see if you examined the Killam cash flow statement for 2014? That is, would you expect operating, investing, and financing cash flows to be positive or negative? Explain your answer fully. Be sure to make reference to business conditions faced by the company.