Dont forget to answer the short answer questions.

1. Using the information below, construct a Statement of Owners Equity for the period Jan. 1, 2018 to Dec. 31, 2018 for the Illini Tap. Some of the items may not be used, some are completed for you, and others may require additional calculation before entering onto the form. Complete the SOE and worksheet using the information below. Complete the Change in Market Valuation section first, then complete the change in Contributed Capital and Retained Earnings section.

2. Using the information below, construct the 2018 Statement of Cash Flows for the Big Tap. Some of the items may not be used, a few are completed for you as examples, and other items may require intermediate calculations before entering on the CFS.

Remember, you need to calculate Family Living Withdrawals on the SOE, and then use the same value on the Cash Flow Statement. Family Living Withdrawals needs to come from the value you calculated on the SOE. Record which section each item is recorded on the SCF worksheet (Operating, Investing, or Financing). Note any assumptions that you make in the notes section of the SCF worksheet

Excess of Market over Book Values (Market - Book) 12/31/2018 12/31/2017 Change Item Machinery and Equipment Land -$5,000 -$13,000 $5,000 $10,000 $0 Buildings Marketable Securities |Other Investments (local brewery) $0 $15,000 $19,000 $15,000 $18,000 Selected Account Balances: Current Deferred Taxes Non-current Deferred Taxes |Non-real estate long-term loan balance Total Equity $1,133 $3,000 $11,552 $6,000 $165,000 $149,000 $264,368 $345,949 $81,581 Other Information: $137,581 2018 Net Income No capital comtributions or distributions were made in 2018 STATEMENT OF OWNER EQUITY for Big Tap For the period: December 31, 2017 December 31, 2018 to: Subtotal Item Total Beginning of period owner equity 264,368 $ Changes in contributed capital and retained earnings: Net Income 137,581 b Withdrawals owner/family living C Capital Contributions: Debt forgiveness 0 Gifts 0 Inheritances 0 f Capital Distributions: Dividends 0 9 Gifts 0 h Inheritances 0 Total change in contributed capital and retained earnings Change in market valuation (market value over cost/basis) of: Marketable securities k Other business investments Machinery and equipment Land Buildings Other capital assets m n Personal assets Personal liabilities r Total change in market valuation S Change in noncurrent portion of deferred taxes Total change in valuation equity Total Change in Owner Equity End of period owner equity 0 >$ 0 U 81,581 345,949 w A II Section Notes 2018 Transactions Land and building purchase Land Cost Building Cost Down Payment Remainder financed on 30-year loan on CFS a 140,000 300,000 90,000 ??? Bar Equipment Purchase Cost of new equipment Down Payment Remainder financed on 5-year loan b 85,000 5,000 ??? Sold equipment Sale price Tax basis of equipment sold C 10,000 15,000 Investment in local brewery Original cost in 2016 Current value Dividends received in 2018 50,000 68,000 3,000 Other items: Principal paid on short-term loans Interest paid on short-term loans Family Living Withdrawals 16,000 e f 2,500 ??? Operating Total Cash Sales Operating inflow 910,000 h Principal paid on long-term loans Operating Total Cash Operating Expenses Interest paid on long-term loans in cash Cash Tax Expenses Deposit to Savings Account i 15,000 Operating outflow 660,000 16,500 k 58,000 25,000 | m TI STATEMENT OF CASH FLOWS for Big Tap For the period: December 31, 2017 to: December 31, 2018 Subtotal Item Total CASH FLOWS FROM OPERATING ACTIVITIES Inflows Cash received from business sales/receipts 910,000 Cash received from net nonbusiness income 910.000 Total cash inflows from operating activities 910,000 Outflows Cash paid for operating expenses Cash paid for operating & s.t. loan interest Cash paid for long-term loan interest Cash paid for purchased inputs Cash paid for other items purchased for resale Cash paid for income and social security taxes Cash withdrawals for owner/family living 660,000 Total cash outflows from operating activities Net cash flows provided by operating activities 660,000 660,000 250,000 $ CASH FLOWS FROM INVESTING ACTIVITIES Inflows Cash received on sale of machinery/equipment/real estate Cash received from sale of internally transferred capital Cash received from withdrawals of savings Cash received from sale of personal assets/retirement accts Total cash inflows from investing activities > Outflows Cash paid to purchase machinery/equipment/real estate Cash paid to purchased productive capital items Cash paid for deposits to savings accounts Cash paid to purchase marketable securities Cash paid to purchase personal assets/retirement accts. Total cash outflows from investing activities > Net cash flows provided by investing activities CASH FLOWS FROM FINANCING ACTIVITIES Inflows Proceeds from operating loans and short-term notes Proceeds from term debt financing Cash received from capital contribut ions Total cash inflows from financing activities Outflows Cash repayment of operating and short-term loans Cash repayment of term debt-scheduled Cash repayment of term debt-unscheduled Cash repayment of capital leases Cash payments of dividends and other capital distributions Total cash outflows from financing activities Net cash flows provided by financing activities > Net increase (decrease) in cash flows Beginning of year cash balance End of year cash balance 250,000 $ 187,000 $ 437,000 Excess of Market over Book Values (Market - Book) 12/31/2018 12/31/2017 Change Item Machinery and Equipment Land -$5,000 -$13,000 $5,000 $10,000 $0 Buildings Marketable Securities |Other Investments (local brewery) $0 $15,000 $19,000 $15,000 $18,000 Selected Account Balances: Current Deferred Taxes Non-current Deferred Taxes |Non-real estate long-term loan balance Total Equity $1,133 $3,000 $11,552 $6,000 $165,000 $149,000 $264,368 $345,949 $81,581 Other Information: $137,581 2018 Net Income No capital comtributions or distributions were made in 2018 STATEMENT OF OWNER EQUITY for Big Tap For the period: December 31, 2017 December 31, 2018 to: Subtotal Item Total Beginning of period owner equity 264,368 $ Changes in contributed capital and retained earnings: Net Income 137,581 b Withdrawals owner/family living C Capital Contributions: Debt forgiveness 0 Gifts 0 Inheritances 0 f Capital Distributions: Dividends 0 9 Gifts 0 h Inheritances 0 Total change in contributed capital and retained earnings Change in market valuation (market value over cost/basis) of: Marketable securities k Other business investments Machinery and equipment Land Buildings Other capital assets m n Personal assets Personal liabilities r Total change in market valuation S Change in noncurrent portion of deferred taxes Total change in valuation equity Total Change in Owner Equity End of period owner equity 0 >$ 0 U 81,581 345,949 w A II Section Notes 2018 Transactions Land and building purchase Land Cost Building Cost Down Payment Remainder financed on 30-year loan on CFS a 140,000 300,000 90,000 ??? Bar Equipment Purchase Cost of new equipment Down Payment Remainder financed on 5-year loan b 85,000 5,000 ??? Sold equipment Sale price Tax basis of equipment sold C 10,000 15,000 Investment in local brewery Original cost in 2016 Current value Dividends received in 2018 50,000 68,000 3,000 Other items: Principal paid on short-term loans Interest paid on short-term loans Family Living Withdrawals 16,000 e f 2,500 ??? Operating Total Cash Sales Operating inflow 910,000 h Principal paid on long-term loans Operating Total Cash Operating Expenses Interest paid on long-term loans in cash Cash Tax Expenses Deposit to Savings Account i 15,000 Operating outflow 660,000 16,500 k 58,000 25,000 | m TI STATEMENT OF CASH FLOWS for Big Tap For the period: December 31, 2017 to: December 31, 2018 Subtotal Item Total CASH FLOWS FROM OPERATING ACTIVITIES Inflows Cash received from business sales/receipts 910,000 Cash received from net nonbusiness income 910.000 Total cash inflows from operating activities 910,000 Outflows Cash paid for operating expenses Cash paid for operating & s.t. loan interest Cash paid for long-term loan interest Cash paid for purchased inputs Cash paid for other items purchased for resale Cash paid for income and social security taxes Cash withdrawals for owner/family living 660,000 Total cash outflows from operating activities Net cash flows provided by operating activities 660,000 660,000 250,000 $ CASH FLOWS FROM INVESTING ACTIVITIES Inflows Cash received on sale of machinery/equipment/real estate Cash received from sale of internally transferred capital Cash received from withdrawals of savings Cash received from sale of personal assets/retirement accts Total cash inflows from investing activities > Outflows Cash paid to purchase machinery/equipment/real estate Cash paid to purchased productive capital items Cash paid for deposits to savings accounts Cash paid to purchase marketable securities Cash paid to purchase personal assets/retirement accts. Total cash outflows from investing activities > Net cash flows provided by investing activities CASH FLOWS FROM FINANCING ACTIVITIES Inflows Proceeds from operating loans and short-term notes Proceeds from term debt financing Cash received from capital contribut ions Total cash inflows from financing activities Outflows Cash repayment of operating and short-term loans Cash repayment of term debt-scheduled Cash repayment of term debt-unscheduled Cash repayment of capital leases Cash payments of dividends and other capital distributions Total cash outflows from financing activities Net cash flows provided by financing activities > Net increase (decrease) in cash flows Beginning of year cash balance End of year cash balance 250,000 $ 187,000 $ 437,000