The consolidated statements of cash flows and related note disclosure for Big Rock Brewery Inc. are in Exhibits 5-17A and B.

Required:
a. In total, how much did Big Rock€™s cash and cash equivalents change during 2013? Was this an increase or a decrease? How did this compare with the previous year?
b. How did Big Rock€™s net income in 2013 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 accounts receivable have on cash flows from operating activities in 2013? What does this tell you about the balance owed by the company€™s customers?
d. What effect did the change in the company€™s accounts payable and accrued liabilities have on cash flows from operating activities in 2013? What does this tell you about the balance owed to these creditors?
e. Calculate Big Rock€™s net free cash flow for 2013 and 2012. Is the trend positive or negative?
f. How did the dividends paid by Big Rock to its shareholders compare with the company€™s net income and cash flows from operating activities?
g. If you were a user of Big Rock€™s financial statements€”a banker or an investor€”how would you interpret the company€™s cash flow pattern? How would you assess the risk of a loan to or an investment in Big Rock? Do you think the company is growing rapidly?

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BIG ROCK BREWERY INC.'S 2013 CONSOLIDATED STATEMENTS OF CASH FLOWS EXHIBIT 5-17A BIG ROCK BREWERY INC. Consolidated Statements of Cash Flows (In thousands of Canadian dollars) Year ended December 30, 2013 December 30, 2012 OPERATING ACTIVITIES Net income for the period ltems not affecting cash: S2,551 $4,135 3,157 (13) 640 (1,586) Depreciation and amortization 3,228 (19) 446 1,168 Gain on sale of assets Stock-based compensation Deferred income tax expense (recovery) Net change in non-cash working capital related to operations (note 25) Cash provided by operating activities 1,496 10,454 3,148 7,897 FINANCING ACTIVITIES Dividend payments Principal repayments of long-term debt Cash received on exercise of options Cash used in financing activities (4,855) (2,042) (4,850) (641) 131 (5,360) (6,897) December 30, 2013 December 30, 2012 INVESTING ACTIVITIES Purchase of property, plant and equipment Purchase of intangibles Proceeds from sale of equipment Cash used in investing activities Net increase (decrease) in cash Cash, beginning of year Cash, end of year Supplemental cash-flow information (2,992) (1,487) 34 964) (1,964) 4,281 $2,317 468 3,626 655 S 4,281 $ 52 958 S 103 Cash interest paid Cash taxes paid EXEIBIT 5-17BE EXCERPT FROM BIG ROCK BREWERY INC.'S 2013 ANNUAL REPORT 25. CHANGE IN NON-CASH WORKING CAPITAL Year ended December 30, 2013 December 30, 2012 $1,649 $741 472 430 147 1,496 Accounts payable and accrued liabilities 884 Accounts receivable Prepaid expenses Total change in non-cash working capital 1,005 (390) 3,148