Prepare a written response:

1. Based on the attached balance sheet, answer the questions about the companys 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.

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	$ 1,200	$ (10,450)

a. In which months does the firm need to obtain additional financing? Why?

b. What are two ways in which the firm can obtain additional financing in the months where that financing is needed?

60 642 RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Consolidated Balance Sheets (In millions of US dollars, except unit data) As of December 31. 2019 2018 ASSETS Current assets: Cash and cash equivalents 1.5335 913 Accounts and notes receivable, net of allowanceof S13 and 514, respectively 527 452 Inventories, net 75 Prepaids and other current assets 52 Total current assets 2,196 1,500 Property and equipment, net of accumulated depreciation and amortization of $746 and 8704, respectively 2,007 1996 Operating lease assets, net 1,176 Intangible assets, net 10,563 10,463 Goodwill 5,651 5,486 Net investment in property leased franchises 48 Other assets, net 719 Total assets 22,360 5 20,141 LIABILITIES AND EQUITY Current liabilities: Accounts and drafts payable 6445 513 Other accrued liabilities 790 Gift card liability 168 167 Current portion of long term debt and finance leases Total current liabilities 1,703 Term debt, net of current portion 11.759 11823 Finance leases, net of current portion 288 226 Operating lease libilities net of current portion Other liabilities, net 1.698 1.547 Deferred income taxes, net 1.564 1,519 Total liabilities 18,101 16,523 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 7,786 4,323 Partnership exchangeable units - 165,507.199 units issued and outstanding at December 31, 2019: 207.523,591 units isued and outstanding at December 31, 2018 (2,353) Accumulated other comprehensive income (koss) (L.178) (1.437) Total Partners' capital 4.255 3.616 Noncontrolling interests Total aquity 4.259 3,618 Total liabilities and equity 20,141 637 101 91 1.408 1,089 730 22,360 $ 60 642 RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Consolidated Balance Sheets (In millions of US dollars, except unit data) As of December 31. 2019 2018 ASSETS Current assets: Cash and cash equivalents 1.5335 913 Accounts and notes receivable, net of allowanceof S13 and 514, respectively 527 452 Inventories, net 75 Prepaids and other current assets 52 Total current assets 2,196 1,500 Property and equipment, net of accumulated depreciation and amortization of $746 and 8704, respectively 2,007 1996 Operating lease assets, net 1,176 Intangible assets, net 10,563 10,463 Goodwill 5,651 5,486 Net investment in property leased franchises 48 Other assets, net 719 Total assets 22,360 5 20,141 LIABILITIES AND EQUITY Current liabilities: Accounts and drafts payable 6445 513 Other accrued liabilities 790 Gift card liability 168 167 Current portion of long term debt and finance leases Total current liabilities 1,703 Term debt, net of current portion 11.759 11823 Finance leases, net of current portion 288 226 Operating lease libilities net of current portion Other liabilities, net 1.698 1.547 Deferred income taxes, net 1.564 1,519 Total liabilities 18,101 16,523 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 7,786 4,323 Partnership exchangeable units - 165,507.199 units issued and outstanding at December 31, 2019: 207.523,591 units isued and outstanding at December 31, 2018 (2,353) Accumulated other comprehensive income (koss) (L.178) (1.437) Total Partners' capital 4.255 3.616 Noncontrolling interests Total aquity 4.259 3,618 Total liabilities and equity 20,141 637 101 91 1.408 1,089 730 22,360 $