Income Statement
	2013	2012	2011
Revenues
Restaurant	$180,000	$187,000	$197,000
Bar	67,000	57,000	47,000
Total	247,000	244,000	244,000
Expenses
Restaurant	$130,000	$125,000	$120,000
Bar	50,000	48,000	47,000
Total	180,000	173,000	167,000
Net Income	67,000	71,000	77,000

Balance Sheet
	2013	2012	2011
Assets
Cash	$13,000	$19,000	$18,000
A/R	3,000	1,000	0
Inventory	18,000	12,000	8,000
Net building/land/equipment	70,000	70,000	70,000
Total	104,000	102,000	96,000
Liabilities
A/P	$9,000	$7,000	$5,000
Notes Payable	4,000	4,000	0
Total	13,000	11,000	5,000
Capital	91,000	91,000	91,000

Prepare a 2013 statement of cash flows for this business using the indirect method on the table below (Use the income statement and balance sheet for the business to find the numbers)

2012 is provided with explanations to help you understand how to complete 2013

		2013	2012
Cash flows from operations	Net Income		+71000
	Depreciation		0
	A/R (Asset)		-1000
	Inventory (Asset)		-4000
	A/P (Liability)		+2000
	Net cash flow from operations		+68000
Cash flows from investing	Net cash flow from investing		0
Cash flows from financing	Notes Payable (Liability)		+4000
	Drawings		-71000
	Net cash flow from financing		-67000
Increase/Decrease in Cash			+1000
Cash at beginning of the year			+18000
Cash at end of year			+19000

1.How does this cash flow statement help you understand the business better?

2. Before making this purchase, what would you need to know and do regarding the inventory listed on the balance sheet?

3. What additional information would you like to know regarding the accounts receivable?W

4. Why would you want to get an appraisal on the land, building and machinery/equipment prior to making a purchase of this property?

5. How could a home / building inspector help you with your decision?

6. After looking at the Small Business Administration website, how do you think they could help you with this purchase?

7. How much would you be willing to pay for this business?How did you come up with that amount?