Exhibit 6.33 presents statements of cash flows for Spokane Paper Group, a forest products company, for three recent years. During this period, it faced financial difficulty, which you can see by noting the pattern of losses increasing with time.

a. Spokane Paper Group operated at a net loss each year but generated positive cash flow from operations. Explain.
b. What is the likely explanation for the changes in Spokane Paper Group€™s cash flow from investing activities during the three-year period?
c. What is the likely explanation for the changes in long-term financing during 2011 and2012?

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2013 2012 2011 OPERATIONS s (77) 268 (43) (154) 266 56 46 Depreciation.. Other Addbacks (Subtractions) .. (Increase) Decrease in Accounts Receivable..(68) (Increase) Decrease in Inventories. . . . Increase (Decrease) in Accounts Payable . Increase (Decrease) in Other Current Liabilities 236 41 (31) 15 50 131 S 66 INVESTING Sale of Property, Plant, and Equipment.. 171 Acquisition of Property, Plant, and Equipment.(271) S 202 (283) 31 (112 (222) 75 Cash Flow from Investing(175) (189 FINANCING (54) 131 191 (164) (55) Increase (Decrease) in Short-Term Borrowing. 25 $ 27 84 287 (269) (67) Increase in Preferred Stock. Decrease in Long-Term Debt (116) Dividends 84 Other Financing Transactions..W Cash Flow from Financing Change in Cash. ..-.... . 34) 60 S 44 $ (2) $ 7 20 Cash, End of Year..pP.EW29 $ 22 S 20