The consolidated statements of cash flows and related note disclosure for Sirius XM Canada Holdings Inc. are in Exhibits 5-16A and B. Sirius broadcasts satellite radio channels to subscribers.

Required:
a. In total, how much did Sirius€™s cash and cash equivalents change during 2013? Was this an increase or a decrease? How did this compare with the previous year?
b. Did Sirius have net income or a net loss in 2013? How did this compare with the cash flows from operating activities? What was the largest difference between these two amounts?
c. What effect did the change in the company€™s trade, other payables, and provisions have on cash flows from operating activities in 2013? What does this tell you about the balance owed to these creditors?
d. Did the balance of deferred revenue increase or decrease during 2013? Was this considered to be an inflow or an outflow of cash? What does this tell you about the trend in the amount of the customers€™ prepaid subscription flees?
e. Calculate Sirius€™s net free cash flow for 2013 and 2012. Is the trend positive or negative?
f. Sirius€™s total liabilities were $370,878,874 at August 31, 2013, and $361,872,956 at August 31, 2012. Determine the company€™s cash flows to total liabilities ratio. Comment on the change year over year. Would your perspective on the results of this ratio calculation change if you were advised that approximately 40% of Sirius€™s liabilities were related to deferred revenue?
g. How did the dividends paid by Sirius to its shareholders compare with the company€™s net income and cash flows from operating activities?

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SIRIUS XM CANADA HOLDINGS INC.'S 2013 CONSOLIDATED STATEMENTS OF CASH FLOWS EXHIBIT 5-16A CONSOLIDATED STATEMENTS OF CASH FLOWS For the year ended August 31 Canadian dollars) Cash provided by (used in) OPERATING ACTIVITIES Nat income (loss) for the year Add (deduct) items not invoving cash Notes 2013 2012 12,190,542 (4,178,816) Amortization of intangible assets 33,167,880 2,407,716 11,109 5,374,778 2,257,295 36,899,668 2,789,385 Depreciation of property and equipment Loss on disposal of property and equipment Deferred tax recovery (8,312,710) 1,493,400 5,088) 950,583 (1,213,473) 3,010 Stock-based compensation Accrued interest Interest accretion 10 10 954,375 (2,291,378) 769,540 Revaluation of derivatives Foreign exchange losses Net change in non-cash working capital and deferred revenue related to operations 5,409,419 60,251,276 18 12,649,125 41,075,084 Cash provided by operating activities For the year ended August 31 Canadian dollars) Notes 2013 2012 INVESTING ACTIVITIES Purchase of property and equipment Purchase of intangible assets Prepayment of property and equipment Purchase of short-term investments Interest received on short-term investments Cash (used in) investing activities (753,788) 7,624,829) (2,240,000) (5,306,295) 176,649 (728,425) (3,700,491) 6 14 14 (15,748,263)(4,428,916) FINANCING ACTIVITIES Payment of dividends Proceeds from exercise of stock options Repayments of debt Payment of related party promissory notes Cash (used in) financing activities Net (decrease) increase in cash and cash equivalents during the year Cash and cash equivalents, beginning of year Cash and cash equivalents, end of year 12 13 10 9 (53,706,925) 2,247,747 464,132 (917,700) (11,173,290) (11,626,858) (5 1,459,178) (6,956,165) 51,034,749 44,078,584 25,019,310 26,015,439 51,034,749 ECXCEHRET 5-16B EXCERPT FROM SIRIUS XM CANADA HOLDINGS INC.'S 2013 ANNUAL REPORT 18. SUPPLEMENTAL CASH FLOW DISCLOSURE The net change in non-cash working capital balances related to operations consists of the following: For the year ended August 31 2013 2012 Decrease (increase) in assets Accounts receivable Prepaid expenses Inventory (1,226,308) (1,226,187) 89,967 (1,414,462) 48,441 1,941,122 Increase (decrease) in liabilities 2,334,378 745,399 11,493,635 (2,499,388) 12,649,125 Trad e, other payables and provisions 5,582,248 4,027,425 3,416,582 (5,254,308) 5,409,419 Due to related parties Deferred revenue Long-term liabilities Net change in non-cash working capital related to operations Operating activities include the following payments and receipts For the year ended August 31 Interest income received Interest paid Taxes paid 2013 2012 360,906 14,429,138 646,678 14,350,173