In problem 3-13, you were asked to prepare a statement of cash flows for New Zealand Dairy Company. Use the information given in the problem to compute the firm’s free cash flows and the financing cash flows and interpret your results.

Data from in problem 3-13

Prepare a statement of cash flows for the New Zealand Dairy Company for the year ended January 31, 2018. Interpret your results.

New Zealand Dairy Company Balance Sheet for 01/31/2017 and 01/31/2018

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Cash 2017 2018 NZ$89.000 NZ$61,000 Accounts receivable 65,000 70,000 Inventory Prepaid expenses Total current assets 115,000 100,000 15,000 10,000 284,000 283,000 Gross plant and equipment 240.000 320,000 Accumulated depreciation (42,000) (70,000) Total assets NZ$482,000 NZ$533,000 Accounts payable NZ$87,000 $90,000 Accrued liabilities 70,000 63.000 Total current debt 157,000 157,000 Mortgage payable 75,000