Question

1. Net cash flows from operating activities are....(hint: don’t forget about net income).

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

cash flow from operating activities measures the change in cash flow due to increase decrease in current asset and current liabilities. it starts with net income and adjust non cash expense along with increas decrease in current assets and current liabilities.

net cash flow from operating activities

Net income	240,897
add: Non cash expense depreciation	61777
(increase) in account receivable [49095-29000]	(20095)
(increase )decrease in inventories[30000-30000]	0
(increase)decrease in prepaid expenses [11000-2000]	(9000)
increase(decrease) in account payable [137566-57432]	80134
increase (decrease) in Wages and Benefits Due [29543-16516.59]	13026.41
increase(decrease) in Estimated Taxes and Fees [8013-6013]	2000
Net cash flow from operating activites	368739.41$