1. Based on the attached balance sheet, answer the questions about the company's cash flows for the year. An income statement is not provided, so you should focus only on the balance sheet items that represent activities in each category requested. (6 points each) a. From December 2018 to December 2019, were operating activities represented on the balance sheet a net cash source or net cash use? Why? b. From December 2018 to December 2019, were investment activities represented on the balance sheet a net cash source or net cash use? Why? c. From December 2018 to December 2019, were financing activities represented on the balance sheet a net cash source or net cash use? Why? 2. Given the following cash budget, help the firm plan for its operational cash needs by answering the questions. October November December Sales $ 65,000 $ 55,000 $ 52,000 Cash Receipts Cash sales $ 48,750 $ 41,250 $ 39,000 1-month lag sales 15,000 16.250 13,750 Total Cash Receipts $ 63,750 $ 57,500 $ 52,750 Cash Disbursements Purchases $ 45,500 $ 38,500 $ 36,400 Wages 12,000 13,000 11,000 Rent 2,000 2,000 2,000 Sales Tax 3,250 2,750 2,600 Income Tax 12,000 Utilities 400 400 400 Total Cash Disbursements $ 63,150 $ 56,650 $ 64,400 Net Cash Flow 600 $ 850 $ (11,650) Beginning Balance 1,250 $ 1,850 $ 2,700 Ending Balance 1,850 $ 2,700 $ (8,950) Minimum Cash Balance 1,500 1,500 1,500 Excess Cash or Required Financing 350 $ 1200 $ (10,450) a in which months does the firm need to obtain additional financing? Why? (4 points) b. What are two ways in which the firm can obtain additional financing in the months where that financing is needed? (6 points) 60 1.500 RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Consolidated Bobce Shoots (In millions of US dollars, except unit data) As of December 31. 2019 2018 ASSES Current assets: Cash and cash equivalents 1.5335 913 Accounts and no es receivable, not of allowance of 513 and 514, respectively 527 Inventories, net 84 75 Prepaids and other current assets 52 Total current assets 2,196 Property and equipment, set of accumulated depreciation and amortization of 5746 and 5704 respectively 2,007 Operating lanse assets, et 1,176 Intangible assets net 10,563 10,463 Goodwill 5,651 $486 Not investment in property leased to franchisees 48 54 Other assets, net 719 642 Totale LIABILITIES AND ROULLY Current liabilities Accounts and drafts payable 6445 513 Other accrued liabilities 790 Gift card bability 168 167 Current portion of long term debt and finmcelones 101 91 Total current liabilities 1.703 1408 Term deht, net of current portion 11.759 Finance lenses, net of current portion 288 226 Operating lease labilities, net of current portion 1.089 Other liabilities, et 1.698 1,547 Deferred income taxes, net 1564 1.519 Total liabilities 18,101 16,523 Commitments and contingencies (Note 18) Partners' capital Class A common units - 202.0006,067 units issued and outstanding at December 31, 2019 and December 31, 2018 7.786 4,323 Partnership exchangeable units : 165.907.199 units issued and outstanding at December 31, 2019, 207,523 591 units issued and outstanding at December 31, 2018 (2.353) 730 Accumulated other comprehensive income (less) (L.178) (1.432) Total Partners capital 3.616 Noncontrolling interests Total quity 4.259 3,618 Total liabilities and equity 22.360 20141 4.255 60 1.500 RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Consolidated Bobce Shoots (In millions of US dollars, except unit data) As of December 31. 2019 2018 ASSES Current assets: Cash and cash equivalents 1.5335 913 Accounts and no es receivable, not of allowance of 513 and 514, respectively 527 Inventories, net 84 75 Prepaids and other current assets 52 Total current assets 2,196 Property and equipment, set of accumulated depreciation and amortization of 5746 and 5704 respectively 2,007 Operating lanse assets, et 1,176 Intangible assets net 10,563 10,463 Goodwill 5,651 $486 Not investment in property leased to franchisees 48 54 Other assets, net 719 642 Totale LIABILITIES AND ROULLY Current liabilities Accounts and drafts payable 6445 513 Other accrued liabilities 790 Gift card bability 168 167 Current portion of long term debt and finmcelones 101 91 Total current liabilities 1.703 1408 Term deht, net of current portion 11.759 Finance lenses, net of current portion 288 226 Operating lease labilities, net of current portion 1.089 Other liabilities, et 1.698 1,547 Deferred income taxes, net 1564 1.519 Total liabilities 18,101 16,523 Commitments and contingencies (Note 18) Partners' capital Class A common units - 202.0006,067 units issued and outstanding at December 31, 2019 and December 31, 2018 7.786 4,323 Partnership exchangeable units : 165.907.199 units issued and outstanding at December 31, 2019, 207,523 591 units issued and outstanding at December 31, 2018 (2.353) 730 Accumulated other comprehensive income (less) (L.178) (1.432) Total Partners capital 3.616 Noncontrolling interests Total quity 4.259 3,618 Total liabilities and equity 22.360 20141 4.255 As of December 31. 2019 2018 ASSETS ats eivable, net of allowance of 513 and $14, respectively ent assets of accumulated deproe in tion and amortization of S746 and $704, 913 452 75 60 1,500 1.533 5 527 84 52 2,196 2,007 1,176 10,563 5651 48 719 22,360 5 1.996 cased to franchisees 10,463 5,486 54 642 20.141 LIABILITIES AND EQUITY able term debt and finance cases ties ation t portion et of current portion 6445 790 168 101 1.703 11,759 288 1,089 1,698 1.564 18,101 513 637 167 91 1.408 11823 226 1,547 1519 16,523 cies (Note 18) 202,006,067 units issued and outstanding at December 31, 2019 and le units - 165,507.199 units issued and outstanding at December 31, 2019: d and outstanding at December 31, 2018 prehensive income (less) 7,786 4,323 (2.353) (1,178) 4255 730 (1.437) 3.616 equity 4.259 22.360 5 3,618 20,141 ASSETS Current assets Cash and cash equivalents Accounts and notes receivable net of allowance of 513 and 14, respectively Inventories, net Prepaids and other current assets Total current assets Property and equipment, net of accumulated depreciation and amortization of S746 and 8704, respectively Operating lease assets, net Intangible assets, net Goodwill Net investment in property leased franchisees Other assets, net Total assets LIABILITIES AND EQUITY Current liabilities: Accounts and dral's payable Other accrued liabilities Gift card liability Current portion of long term debt and finance leases Total current liabilities Term debt, net of current portion Finance leases, net of current portion Operating lease lubilities, net of current portion Other liabilities, het Deferred income taxes, net Total liabilities Commitments and contingencies (Note 18) Partners' capital Class A common units - 202,006,067 units issued and outstanding at December 31, 2019 and December 31, 2018 Partnership exchangeable units - 165,507.199 units issued and outstanding at December 31, 2019 207.523,391 units issued and outstanding at December 31, 2018 Accumulated other comprehensive income (less) Total Partners capital Noncontrolling interests Total equity Total liabilities and equity 1. Based on the attached balance sheet, answer the questions about the company's cash flows for the year. An income statement is not provided, so you should focus only on the balance sheet items that represent activities in each category requested. (6 points each) a. From December 2018 to December 2019, were operating activities represented on the balance sheet a net cash source or net cash use? Why? b. From December 2018 to December 2019, were investment activities represented on the balance sheet a net cash source or net cash use? Why? c. From December 2018 to December 2019, were financing activities represented on the balance sheet a net cash source or net cash use? Why? 2. Given the following cash budget, help the firm plan for its operational cash needs by answering the questions. October November December Sales $ 65,000 $ 55,000 $ 52,000 Cash Receipts Cash sales $ 48,750 $ 41,250 $ 39,000 1-month lag sales 15,000 16.250 13,750 Total Cash Receipts $ 63,750 $ 57,500 $ 52,750 Cash Disbursements Purchases $ 45,500 $ 38,500 $ 36,400 Wages 12,000 13,000 11,000 Rent 2,000 2,000 2,000 Sales Tax 3,250 2,750 2,600 Income Tax 12,000 Utilities 400 400 400 Total Cash Disbursements $ 63,150 $ 56,650 $ 64,400 Net Cash Flow 600 $ 850 $ (11,650) Beginning Balance 1,250 $ 1,850 $ 2,700 Ending Balance 1,850 $ 2,700 $ (8,950) Minimum Cash Balance 1,500 1,500 1,500 Excess Cash or Required Financing 350 $ 1200 $ (10,450) a in which months does the firm need to obtain additional financing? Why? (4 points) b. What are two ways in which the firm can obtain additional financing in the months where that financing is needed? (6 points) 60 1.500 RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Consolidated Bobce Shoots (In millions of US dollars, except unit data) As of December 31. 2019 2018 ASSES Current assets: Cash and cash equivalents 1.5335 913 Accounts and no es receivable, not of allowance of 513 and 514, respectively 527 Inventories, net 84 75 Prepaids and other current assets 52 Total current assets 2,196 Property and equipment, set of accumulated depreciation and amortization of 5746 and 5704 respectively 2,007 Operating lanse assets, et 1,176 Intangible assets net 10,563 10,463 Goodwill 5,651 $486 Not investment in property leased to franchisees 48 54 Other assets, net 719 642 Totale LIABILITIES AND ROULLY Current liabilities Accounts and drafts payable 6445 513 Other accrued liabilities 790 Gift card bability 168 167 Current portion of long term debt and finmcelones 101 91 Total current liabilities 1.703 1408 Term deht, net of current portion 11.759 Finance lenses, net of current portion 288 226 Operating lease labilities, net of current portion 1.089 Other liabilities, et 1.698 1,547 Deferred income taxes, net 1564 1.519 Total liabilities 18,101 16,523 Commitments and contingencies (Note 18) Partners' capital Class A common units - 202.0006,067 units issued and outstanding at December 31, 2019 and December 31, 2018 7.786 4,323 Partnership exchangeable units : 165.907.199 units issued and outstanding at December 31, 2019, 207,523 591 units issued and outstanding at December 31, 2018 (2.353) 730 Accumulated other comprehensive income (less) (L.178) (1.432) Total Partners capital 3.616 Noncontrolling interests Total quity 4.259 3,618 Total liabilities and equity 22.360 20141 4.255 60 1.500 RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Consolidated Bobce Shoots (In millions of US dollars, except unit data) As of December 31. 2019 2018 ASSES Current assets: Cash and cash equivalents 1.5335 913 Accounts and no es receivable, not of allowance of 513 and 514, respectively 527 Inventories, net 84 75 Prepaids and other current assets 52 Total current assets 2,196 Property and equipment, set of accumulated depreciation and amortization of 5746 and 5704 respectively 2,007 Operating lanse assets, et 1,176 Intangible assets net 10,563 10,463 Goodwill 5,651 $486 Not investment in property leased to franchisees 48 54 Other assets, net 719 642 Totale LIABILITIES AND ROULLY Current liabilities Accounts and drafts payable 6445 513 Other accrued liabilities 790 Gift card bability 168 167 Current portion of long term debt and finmcelones 101 91 Total current liabilities 1.703 1408 Term deht, net of current portion 11.759 Finance lenses, net of current portion 288 226 Operating lease labilities, net of current portion 1.089 Other liabilities, et 1.698 1,547 Deferred income taxes, net 1564 1.519 Total liabilities 18,101 16,523 Commitments and contingencies (Note 18) Partners' capital Class A common units - 202.0006,067 units issued and outstanding at December 31, 2019 and December 31, 2018 7.786 4,323 Partnership exchangeable units : 165.907.199 units issued and outstanding at December 31, 2019, 207,523 591 units issued and outstanding at December 31, 2018 (2.353) 730 Accumulated other comprehensive income (less) (L.178) (1.432) Total Partners capital 3.616 Noncontrolling interests Total quity 4.259 3,618 Total liabilities and equity 22.360 20141 4.255 As of December 31. 2019 2018 ASSETS ats eivable, net of allowance of 513 and $14, respectively ent assets of accumulated deproe in tion and amortization of S746 and $704, 913 452 75 60 1,500 1.533 5 527 84 52 2,196 2,007 1,176 10,563 5651 48 719 22,360 5 1.996 cased to franchisees 10,463 5,486 54 642 20.141 LIABILITIES AND EQUITY able term debt and finance cases ties ation t portion et of current portion 6445 790 168 101 1.703 11,759 288 1,089 1,698 1.564 18,101 513 637 167 91 1.408 11823 226 1,547 1519 16,523 cies (Note 18) 202,006,067 units issued and outstanding at December 31, 2019 and le units - 165,507.199 units issued and outstanding at December 31, 2019: d and outstanding at December 31, 2018 prehensive income (less) 7,786 4,323 (2.353) (1,178) 4255 730 (1.437) 3.616 equity 4.259 22.360 5 3,618 20,141 ASSETS Current assets Cash and cash equivalents Accounts and notes receivable net of allowance of 513 and 14, respectively Inventories, net Prepaids and other current assets Total current assets Property and equipment, net of accumulated depreciation and amortization of S746 and 8704, respectively Operating lease assets, net Intangible assets, net Goodwill Net investment in property leased franchisees Other assets, net Total assets LIABILITIES AND EQUITY Current liabilities: Accounts and dral's payable Other accrued liabilities Gift card liability Current portion of long term debt and finance leases Total current liabilities Term debt, net of current portion Finance leases, net of current portion Operating lease lubilities, net of current portion Other liabilities, het Deferred income taxes, net Total liabilities Commitments and contingencies (Note 18) Partners' capital Class A common units - 202,006,067 units issued and outstanding at December 31, 2019 and December 31, 2018 Partnership exchangeable units - 165,507.199 units issued and outstanding at December 31, 2019 207.523,391 units issued and outstanding at December 31, 2018 Accumulated other comprehensive income (less) Total Partners capital Noncontrolling interests Total equity Total liabilities and equity