The below cash flow statement is based on their second year of operations for Rexican Products Inc, a manufacturer of medical grade face masks. ash flows from operating activities: Net income Add: Depreciation Less: Increase in accounts receivable Increase in inventory Increase in prepaid expenses Decrease in accounts payable Cash from operating activities 900,000 490,000 (360,000) (1,420,000) (110,000) (92,000) (592,000) Cash flows from investing activities: Proceeds from sale of investments Purchase of equipment Cash for investing activities 240,000 (1,900,000) (1,660,000) Cash flows from financing activities: Proceeds from issue of common shares Payment of cash dividends Cash from financing activities 1,500,000 (510,000) 990,000 Required: 1. What cash flow pattern does Rexican fall into (1 mark) 2. What is the total change in cash? Is it an increase or decrease (2 marks) 3. Do you think Rexican Products Inc. has had a successful year? Prepare a supported discussion for your answer, explaining the cash flow pattern and what it can tell us about the company. Be as specific in your response. (6 marks) 4. What areas are of concern to you when reviewing their Statement of Cash Flows? What other information would you like to know about the company, given the information presented? (3 marks) 5. Calculate the cash to cash cycle using the information below. State any suggestions you have for the company (3 marks) Their policy is to pay invoices within 10 days of receiving them o It takes, on average, 45 days to sell their products. Receivables are collected within 90 days of delivery