Sheek Dcor Ltd. (SDL) has been profitably operating upscale furniture showrooms in Montreal, as well as a

Sheek Décor Ltd. (SDL) has been profitably operating upscale furniture showrooms in Montreal, as well as a lucrative export business where customers place orders online for home delivery by SDL. In the current year, SDL acquired, as part of its expansion plan, distribution centres in Europe. SDL’s board of directors authorized a common share issuance, which was closed prior to fiscal year end. Proceeds from the common share issue will allow SDL to make a bid to acquire a furniture manufacturer early in the next fiscal year.

Required

Determine the cash flow pattern that you expect SDL to have, and explain your rationale.