Exhibit 1-9C on page 64 shows the consolidated statements of cash flows for Mosaid Technologies Incorporated for the years ended April 30, 2009 and 2008. An Ontario corporation, Mosaid licenses and develops semiconductor and communication technologies. It designs memory technology and supplies semiconductor technologies around the world. In fiscal 2007, Mosaid decided to sell its Systems Division assets to outside parties, and to stop development of its Semiconductor Intellectual Property. Consequently, the results of operations related to these two areas are reported in the statement of cash flows as discontinued operations.
In Exhibit 1-9C
Consolidated Statement Of Cash Flow

Required:
a. For the combined two-year period, calculate the net cash inflow (outflow) from continuing operations and the net cash inflow from discontinued operations. As a user of the financial statements, would these findings cause you to be concerned about Mosaid Technologies' ability to generate cash flows in the future?
b. For the net cash inflow (outflow) from continuing operations in 2008 and 2009, comment on which activity is the main source of cash and which is the main use of cash. As a user of the financial statements, would these findings change your opinion about Mosaid Technologies' ability to generate cash flows continuing into the future, compared to your conclusion in part "a"?
c. For both 2009 and 2008, compare the cash from operations to the net income and identify the main items that account for the differences between these two figures.
d. What changes have occurred with the share capital of Mosaid Technologies?
e. Did Mosaid Technologies' retained earnings increase or decrease in 2009? Explain your conclusion.
f. Using your conclusions from parts "d" and "e," do you think the portion of total assets financed by equity has increased or decreased in 2009? Explain your con¬clusion.

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Year Ended April 30, 2009 April 30. 2008 Operating Income before discontinued operations ltems not affecting cash $ 4,816 $10,855 Amortization of capital assets and acquired intangible assets Stock-based compensation Loss on disposal of capital assets Unrealited foreign exchange loss (gain) on other long-term liabilities Future income tax 10,320 790 76 6,536 (1,065) 21,473 (745) 20,728 9,653 550 95 (3.999) 6,743 23,897 9.341) Change in non-cash working capical items from continuing operations (Note 14) 4.556 Investing (9,152) (60,135) 77,493 8,206 Acquisition of capital assets and acquired intangible assets (1.708) (119.460) 110.090 (11,078) Proceeds on disposal and maturity of short-term markerable securities Financing Repayment of mortgage Increase in long-term liabilities Repurchase of common shares Dividends Funding of Restricted Share Unit Plan Issue of common shares (3,633) (8,415) (10,320) (825) 268 (22,925) (4.346) (4.081) (10.324) (10.958) 2702 (27.007) Net cash inflow (outflow) from continuing operations Net cash inflow from discontinued operations (Note 12) Net cash inflow (outflow) Cash and cash equivalents, beginning of year Cash and cash equivalents, end of year 6,009 4,757 10,766 22,133 $32,899 (23,529) 22,266 (1.263) 23,396 $22.133 Supplementary Information Cash on hand and bank balances Short-term investments $ 6,438 26.461 $ 8,126 4,007 $22,133 Total cash and cash equivalents $32,899