1. Create Cash flow statement for 2017 from the given income statement and balance sheet

2. Is the cash flow from operating activities positive?

3. What are the largest sources and uses? are they matched?

EXHIBIT 2: STATEMENT OF FINANCIAL POSITION (AS AT SEPTEMBER 30) (CAS) 2017 2016 Assets Current assets Cash 97,498 51,591 Accounts receivable 8,692 7,948 Income taxes recoverable 2,824 Deposits 4.500 4.500 Total current assets 110,690 66,863 Long-term assets Furniture and equipment 69,690 69,690 Less: Accum dep, furniture and equipment (39 276) 30,414 (35493) 34,197 Computer equipment 827 827 Less Accum dep, computer equipment (749) 78 (672) 155 Leasehold improvements 40,345 40,345 Less Accum dep, leasehold improvements (36.483) 3.862 (32.584) 7.761 Total long-term assets 34,354 42,113 Total assets 145,044 108,976 Liabilities and shareholders' equity Liabilities Current liabilities Accounts payable 10.734 8,915 Accrued liabilities 10,111 21,572 Income taxes payable 3.412 Due to shareholders 68,805 76,805 Total current liabilities 93,062 107 292 Shareholders equity Share capital (100 common shares-voting)" 100 100 Retained earnings 51.882 1584 Total shareholders' equity 51.982 1.684 Total liabilities and shareholders' equity 145,044 108.976 Notes: Accum accumulation, dep depreciation: * Authorized to issue unlimited Class A shares, unlimited non-voting common and unlimited common shares Source: Company files EXHIBIT 1: INCOME STATEMENT (FOR THE YEAR ENDING SEPTEMBER 30) (CAS) Revenue 2017 2016 Sales 300,323 100% 249,248 100% Cost of sales Trainers 103,234 34.4% 103,785 41.6% Purchases including freight 7.177 2.4% 3.198 1.3% Less. Total cost of sales 110.411 36 8% (106.983) 42.9% Gross profit 189,912 63.2% 142,265 57.1% Operating expenses Rent 59,183 19.7% 59,875 24.0% Advertising and web design 26,862 8.9% 16,709 67% Depreciation 12,554 4.2% 15,268 6.1% Office 6,796 2.3% 6,439 2.6% Repairs and cleaning 5,464 1.8% 5,868 2.4% Interest and bank charges 4,895 1.6% 3,923 1.6% Utilities 4.291 14% 4,027 16% Business taxes, licenses, and memberships 4,067 1.49 4,056 1.6% Professional fees 2,192 0.7% 1,960 0.8% Insurance 2,170 0.7% 2,091 0.8% Telephone 1,293 0.4% 3,382 1.4% Meals and entertainment 919 0.3% 3,843 1.5% Office supplies 496 0.2% 1,995 0.8% Conventions and courses 0.0% 109 0 0% Less: Total operating expenses (131 202) 43.7% (129545) 52.0% Net income before taxes 58,710 19.5% 12,720 5.1% Income taxes 8,412 28% 2,176 0.9% Net income after tax 50,298 16.7% 10,544 42% Notes All sales are made on credit. Sales figures do not include personal training revenues. These revenues go directly to the trainer, ** All expenses related to cost of sales were paid on credit. Source Company files