Urban Eats Ltd. (UEL) has been successfully operating upscale supermarkets in the Lower Mainland of British Columbia as well as a profitable on-line market through which customers place orders for home delivery by UEL. In the current year, UEL sold one of its warehouses while no new stores were acquired or opened. However, UEL’s management team completed a successful bond issuance in order to position the company to be able to make a bid to acquire one of its competitors early in the next fiscal year.
Required:
Determine the cash flow pattern that you expect UEL to have and explain your rationale.