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DeLish Dish, a small, local restaurant here in Jersey City is doing well financially and is thinking about opening up another location in Hoboken next

DeLish Dish, a small, local restaurant here in Jersey City is doing well financially and is thinking about opening up another location in Hoboken next year. The owners have focused so much on cooking delicious food that they havent really kept up with their financial records. Since you come into the restaurant frequently, the owners know you are taking a corporate finance course and ask if you could help them out. Being a financial wizard, and nice person, you say you will give them your recommendation in exchange for a free meal.

Please use the following information to:

5a. Prepare a balance sheet.

5b. Prepare an income statement.

5c. Compute free cash flow (otherwise known as cash flow from assets). Last years current assets were $87,000 and current liabilities were $43,000. Last years net fixed assets were $245,000.

5d. Give your overall recommendation to whether or not they should open up a new shop next year.

DeLish Dish, LLC.

Mixed Financial Statement information

Cost of Goods Sold

248,000

Cash

43,000

Depreciation

63,000

Interest Expense

14,000

Selling and Administrative Expense

60,000

Accounts payable

34,000

Net Fixed Assets

298,000

Sales

570,000

Accounts Receivable

26,000

Notes payable

25,000

Inventory

52,000

Long-term Debt

140,000

(Adapted from Ross, Westerfield, and Jordan, 2016 Chapter 2 Minicase)

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