Question

1. The total adjustments to net income to determine cash flows from operating activities             are……(Hint: be sure to add up changes in current assets and current liabilities as noted on the balance sheet going from year 2017 to year 2018) to get the answer

1. Moore's Family Restaurant
   Assets & Liabilities as of 12/31/17					Assets & Liabilities projected to 12/31/18
   	ASSETS				ASSETS
   	Cash	$492,118.00			Cash	$589,118.00
   	Accounts Receivable	$29,000.00			Accounts Receivable	$49,095.00
   	Inventories	$30,000.00			Inventories	$30,000.00
   	Prepaid Expenses	$2,000.00			Prepaid Expenses	$11,000.00
   	Total Current Assets	$553,118.00			Total Current Assets	$679,213.00
   	Building	$727,460.97			Building	$760,000.00
   	Equipment	$14,500.00			Equipment	$18,000.00
   	Fixtures	$33,320.00			Fixtures	$35,500.00
   	Total Fixed Assets	$775,280.97			Total Fixed Assets	$813,500.00
   	Total Assets	$1,328,398.97			Total Assets	$1,492,713.00
   	LIABILITIES				LIABILITIES
   	Accounts Payable	$57,432.00			Accounts Payable	$137,566.00
   	Wages and Benefits Due	$16,516.59			Wages and Benefits Due	$29,543.00
   	Estimated Taxes and Fees	$6,013.00			Estimated Taxes and Fees	$8,013.00
   	Total Current Liabilities	$79,961.59			Total Current Liabilities	$175,122.00
   	Long Term Loan	$70,000.00			Long Term Loan	$70,000.00
   	Total Long-Term Liabilities	$70,000.00			Total Long-Term Liabilities	$70,000.00
   	Owner Equity	$1,178,437.38			Owner Equity	$1,247,591.00
   	Total Liabilities and Owner Equity	$1,328,398.97			Total Liabilities and Owner Equity	$1,492,713.00

Moores Familay Restaurant Financial Data		2017	2018 (Present Day)	2019 Budget Forecast
Budget Worksgheet
Sales		$1,642,896	$1,766,296	$2,002,978
Cost of Product		$697,211	$597,211	701,042
Labor		$330,772	$340,695	349,212
Benefits		$79,872	$114,519	122,224
Utilities		$54,340	$50,644	$58,241
Loan Principle Repayments		$0	$0	$0
Insurance & Property Taxes		$110,000	$110,000	$110,000
Services (accounting, trash, cleaning, etc.)		$41,051	$43,908	$105,494
Other: SG&A, advertising, promostions		$77,629	$84,771	$93,248
Total Costs		$1,390,875	$1,341,748	$1,539,462
Earnings Before Interest, Income Taxes, & Depreciation (EBITD)		$252,021	$424,548	$463,516
Interest on loan		$3,500	$3,000	$3,000
Income Taxes		$70,566	$118,873	$129,784
Depreciation on values		$71,176	$61,777	$61,177
Earnings After Interest, Income Taxes, & Depreciation		$106,779	$240,897	$269,555
Meals Sold		243,392	252,328	272,514
Average Meal Value		6.75	7.00	7.35

Answer 1

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Moore's Family Restaurant			Workings	Amount $
Cashflow statement as on 31.12.2018			Increase in Accounts Receivable
Indirect Method	Amount $	Amount $	Closing Balance	49,095.00
Particulars			Less: Opening Balance	29,000.00
Net Income	240,897.00		Increase in Accounts Receivable	20,095.00
Adjustment to reconcile Net Income to Net Cash
Add:			Increase in Prepaid Expenses
Depreciation Expense	61,777.00		Closing Balance	11,000.00
Income Taxes	118,783.00		Less: Opening Balance	2,000.00
Cash flow from Operations		421,457.00	Increase in Prepaid Expenses	9,000.00
Changes in Current Assets/Current Liabilities
Increase in Accounts Receivable	(20,095.00)		Increase in Accounts Payable
Increase in Prepaid Expenses	(9,000.00)		Closing Balance	137,566.00
Increase in Accounts Payable	80,134.00		Less: Opening Balance	57,432.00
Increase in Wages and Benefits Due	13,026.41	64,065.41	Increase in Accounts Payable	80,134.00
Taxes and Fees paid		(116,783.00)
Net cash provided by (Used for) operating activities		368,739.41	Increase in Wages and Benefits Due
			Closing Balance	29,543.00
Cash flow from investing activities			Less: Opening Balance	16,516.59
Addition in Fixed Assets	(99,996.03)		Increase in Wages and Benefits Due	13,026.41
Net cash provided by (Used for) investing activities		(99,996.03)
			Taxes and Fees paid
Cash flow from financing activities			Opening Balance	6,013.00
Changes in Equity	(171,743.38)		Add: Income Taxes for 2018	118,783.00
Net cash provided by (Used for) financing activities		(171,743.38)	Less: Closing Balance	8,013.00
			Taxes and Fees paid	116,783.00
Net Increase/(Decrease) in cash		97,000.00
Cash Balance, December 31, 2017		492,118.00	Addition in Fixed Assets
Cash Balance, December 31, 2018		589,118.00	Closing balances of
			Building	760,000.00
			Equipment	18,000.00
			Fixtures	35,500.00
			Add: Depreciation	61,777.00
			Less: Opening balances of
			Building	727,460.97
			Equipment	14,500.00
			Fixtures	33,320.00
			Addition in Fixed Assets	99,996.03
			Changes in Equity
			Opening balance	1,178,437.38
			Add- Net Income	240,897.00
			Less- Closing balance	1,247,591.00
			Changes in Equity	171,743.38