Complete the Operating of the Statement of Cash Flows using the following information: There were no gains and losses in 20X2. The Change in Retained Earnings reflects the Net Income for 20X2, no dividends were paid out or declared (hint this was calculated in the horizontal analysis of the balance sheet). Depreciation Expense is equal to the increase in accumulated depreciation (hint this was calculated in the horizontal analysis of the balance sheet). Depreciation is 415,298 and net income is 151,775.Below is the summary operating statement and balance sheet used to complete the Statement of Cash flows above.

2 Statement of Cash Flows For The Year Ending December 31, 20X8 4 5 Net Cash Flow From Operating Activities 6 Net Income 7 Adjustments to reconcile net income to 8 net cash from operating activities: 9 1 Add: Non-Cash Items 10 2 Add: Losses on Sale of Long Term Assets 11 3 Subtract: Gains on Sale of Long Term Assets 12 4 Add: Decrease in Current Assets 13 5 Subtract; Increase in Current Assets 14 6 Add: Increase in Current Liabilities 15 7 Subtract: Decrease in Current Liabilities 16 Net Cash flow provided/(used) from operating activities 17 18 OC Summary Operating Statement 1 2 3 Variance (Horizontal) # IS 20x1 20x2 4 % 5 300 79,388 300 0.0% 6 Rooms Available: 2.2% 2.2% 4.2% 7 Rooms Sold: 81,140 74.1% 1,752 8 Occupancy 9 ADR: 72.5% 0 183.62 S 191.33 8 10 Rooms RevPAR: S 133.12 S 141.78 6.5% 176.20 11 Total RevPAR: 12 13 Operating Revenue S S 185.65 9 5.4% $ % % % 14,577,225 4,444,791 76.37% 75.55% Rooms 15,524,516 4,517,064 287,236 20,328,816 947,292 72,273 15,511 1,035,076 6.5% 14 15 18 17 Total Operating Revenue 18 19 Departmental Expenses 20 21 22 Total Departmental Expenses 23 24 Total Departmental Profit 25 28 Undistributed Operating Expenses 27 28 29 30 31 32 Total Undistributed Expenses 33 34 Gross Operating Profit 35 36 Management Fees 37 38 Income Before Non-Operating Income and Expenses 39 40 Non-Operating Income and Expenses 41 42 43 44 Total Non-Operating Income and Expenses 45 46 EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) 47 Food and Beverage 23.04% 22.22% 1.6% 271,725 19,293,741 Miscellaneous Income 1.41% 1.41% 5.7% 100.00% 100.00% 5.4% 3,848,590 3,272,482 7,121,072 26.40% 25.40 %| 3,943,227 2.5% Rooms 94,637 Food and Beverage 73.63% 3,329,076 7,272,303 73.70% 56,594 1.7% 35.77% 36.91 % 151,231 2.1% 13,056,513 64.23% 883,845 12,172,669 63.09% 7.3% 62,572 (3,964) 54,237 19,516 5,895 138,256 1,584,062 308,896 4.0% -1.3 % 8.21% 1.60% 9.419% Administrative and General 1,646,634 304,932 1,870,251 8.10% Information and Telecommunications Systems Sales and Marketing Property Operation and Maintenance Utilities 1.50% 1,816,014 793,637 9.20% 4.00% 2.90% 25.70% 3.0% 4.11% 813,153 2.5% 583,641 5,086,250 3.03% 589,536 5,224,506 1.0% 26.36% 2.7% 7.086.419 36.73% 7,832,007 38.53% 745,589 10.5% 578,812 3.00% 3.00% 609,864 31,052 5.4% 6,507,607 33.73% 7,222,143 35.53% 714,537 11.0% - (2,000) 753,247 -0.01 % 3.85% (Income)Loss Property and Other Taxes -0.01% (1,300) 783,001 149,298 930,999 700 -35.0% 29,754 (3,135) 27,319 3.90% 4.0% Insurance 152,433 0.79% 0.73% 2.1% 903,680 4.58% 4.68% 3.0% 30.95 %| 29.05% 5,603,927 6,291,144 687,218 12.3% Condensed Balance Sheet December 31, 20X7 and 20x8 20x2 Changes 20x1 $ Assets Current Assets Cash 335,636 359,875 24,239 1.51% 1,70% 7.22% 2.59% (148,476) (19,900) Accounts Receivable 574,659 426,183 2.01% -25.84% Inventory Prepaids 218,900 0.99% 199,000 0.94% -9.09% 57,200 68,945 1,054,003 11,745 0.26% 0.33% 20.53% Total Current Assets (132,392) 1,186,395 5.35% 4.98% -11.16% 4.73% (500,000) Investments 1,500,000 6.76% 1,000,000 -33.33% Property and Equipment Land 1,779,800 8.02 % 1,779,800 8.41% 0.00% 90.88%| 20,160,800 Building 20,160,800 95.29% 0.00% 30.76% Equipment Accumulated Depreciation Net Property and Equipment 6,485,624 (8,929,800) 29.24% 6,508,560 22,936 (415,298) (392,362) 0.35% (9,345,098) 19,104,062 40.26 % -44.17 % 4.65% 19,496,424 87.89% 90.29% -2.01% 100.00% 21,158,065 100.00% (1,024,754) Total Assets -4.62 % 22,182,819 Liabilities & Owners' Equity Current Liabilities Accounts Payable Accrued Expenses (232,374) (350,629) (20,056) (603,059) 358,269 125,895 207,459 0.60% -64.86% 0.98% 558,088 -62.83 % 0.95 % Advanced Deposits 200,561 220,617 -9.09% Total Current Liabilities 1,136,974 533,915 2.52% -53.04% Mortgage Payable (573,470) 6,308,170 5,734,700 27.10% -9.09% Common Stock 3,700,000 17.49% 0.00% 3,700,000 Retained Earnings 151,775 11,037,675 11,189,450 52.89% 1.38% 100.00% (1,024,754) -4.62% Total Liabilities and Owners' Equity 22,182,819 21,158,065