Thalina Mineral Works is one of the world€™s leading producers of cultured pearls. The company€™s condensed statement of cash flows for the years 2012€“2014 follows.

Required
Comment on Thalina Mineral Works€™ cash flows. Do you see any indicators of potential liquidityproblems?

Transcribed Image Text:

2014 2013 2012 Net cash used by operating $ (937,703) $4,938,229) $(1,786,654) activities Net cash used by investing activities (336,980) (186,582) (261,468) (333,202) Net cash used by financing (1,514,680) (5,120,909) activities Net change in cash and equivalents Cash and cash equivalents at beginning 7,048,409 13,762786 21,003,551 (1,461,265) 6,714,377) 7,240,765) of year Cash and cash equivalents at end of year $5,587,144 $7,048,409 $13,762,786