Is the Illini Tap liquid? Is the bar solvent? Has the liquidity or solvency position of the bar changed dramatically during 2019? Do any of the liquidity or solvency measures indicate potential trouble for the bar? What does the repayment capacity represent? What does the repayment margin represent? Interpret the term debt and capital lease coverage ratio for the Illini Tap.

Balance Sheet for Mini Tap 2018 2019 2018 2019 113,000 97,000 41,000 As of December 31, 2019 ASSETS CURRENT ASSETS Cash Savings & short-term deposits Marketable securities (at market) Accounts receivable Supplies Inventories: Raw 83,000 39.000 16,000 15,000 10,000 15,000 75,000 15,000 10,000 14.000 9,000 LIABILITIES AND OWNER EQUITY CURRENT LIABILITIES Accounts payable Credit line, short term notes Current portion of all term debt Accrued interest Accrued expenses Accrued business expenses Other accrued items Current portion-deferred taxes Other current liabilities - business Other current liabilities - personal Accrued taxes 21,000 3,000 24,000 4,000 Raw Inputs Intermediate Goods 27,000 25,000 2,492 1,359 Completed Goods Cash invested in work in progress Prepaid expenses Other current assets - business Other current assets - personal TOTAL CURRENT ASSETS 29,500 31,000 261,500 253,000 TOTAL CURRENT LIABILITIES 106,492 99,359 175,000 220,000 165,000 220,000 70,000 72,000 NONCURRENT ASSETS Breeding livestock (at market) Machinery equipment (at market) Investments in capital leased assets Investments in cooperatives Investments in other entities Retirement accounts Cash value of insurance policies Long-term financial assets, nonmarketable securities Business Real Estate smes Land Buildings Other noncurrent assets -business Other noncurrent assets-personal TOTAL NONCURRENT ASSETS NONCURRENT LIABILITIES Noncurrent portion of term business debt: Non-real estate debt: Maturity less than 10 years Maturity greather than or equal to 10 years Real estate debt: Maturity less than 10 years Maturity greather than or equal to 10 years Noncurrent portion-deferred taxes Other noncurrent liabilities - business Other noncurrent liabilities - personal 330,000 12,600 3,000 145,000 295,000 TOTAL NONCURRENT LIABILITIES 168,000 562,600 245,000 732,000 TOTAL LIABILITIES 274,492 661,959 OWNER EQUITY Contributed capital Retained earnings Valuation equity TOTAL OWNER EQUITY TOTAL LIABILITIES & OWNER EQUITY 100,000 112,009 20,000 232,009 506,500 100,000 188,641 34,400 323,041 985,000 TOTAL ASSETS 506,500 985.000 NOTES to accompany Financial Statements: Book values (cost less depreciation) Financial investments Other investments Machinery and equipment Real-estate land Real-estate buildings 70,000 50,000 185,000 70,000 50,000 215,000 140,000 285,000 MESIAL for Mini Tap Subtotall Total Line For the period: January 1.2018 fo: December 31, 2018 Hem REVENUES AND ADJUSTMENTS Sales Cash receipts Other business income Accrual adjustments: Inventories Accounts Receivable 910,000 (1) (2) -2,000 15,000 (3) 14) Gross revenue 923,000 >> $923,000 (5) 650,000 (6) OPERATING AND INTEREST EXPENSES AND ADJUSTMENTS Operating Expenses: Cash operating expenses Accrual adjustments: Accounts payable Prepaid Expenses Supplies Work in progress Other accrued expenses and items 2,000 1,500 1,000 0 1,000 (7) (8) (9) (10) (11) 50,000 (12) 700,500 (13) 17,000 4,000 (15) 21,000 (16) 721,500 >> Depreciation Total Operating Expense Interest Expenses: Amountofinterestpaid in cash Accrual adjustments : Accrued interest Total Interest Expense Total Operating and InterestExpense Netincome from operations Gainslosses on sales of capital assets Netincome before taxes and non-business adjustments NON-BUSINESS ITEMS Non-business wages Non-business interestand dividends Other non-business income Gains/osses on sales of nonbusiness assets $721,500 (17) $201,500 (18) -$5,000 (19) $196,500 (20) (21) 5,000 (23) (24) Total nonbusiness income 5,000 >> $5,000 (25) Net income before taxes $201,500 (26) 48,000 (27) TAXEXPENSES AND ADJUSTMENTS Amountoftax paid in cash Accrual adjustments: Income and social security taxes Current portion of deferred taxes 3,000 -1,133 (28) (29) Total Tax Expense 49,868 >> $49,868 (30) NET INCOME $151,633 (31) STATEMENT OF CASH FLOWS for illini Tap Subtotal Total 910,000 5.000 915,000 915,000 For the period: January 1, 2018 : December 31, 2018 Hem CASH FLOWS FROM OPERATING ACTIVITIES Infows Cash received from business sales/receipts Cash received from netnonbusiness income Totalcash inflows from operating activities Dumows Cash paid for operating expenses Cash paid for operating &s. 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 ownerfamily living Totalcash outflows from operating activities Netcash flows provided by operating activities 650,000 2,500 14,500 48,000 75.000 790,000 $ $ 790,000 125,000 15,000 15,000 15,000 CASH FLOWS FROM INVESTING ACTIVITIES hows Cash received on sale of machinery/equipmentreal estate Cash received from sale of internally transferred capital Cash received from withdrawals of savings Cash received from sale of personal assets/retirementacets. Total cash inflows from investing activities Outows Cash paid to purchase machinery equipmentrealestate Cash paid to purchased productive capital items Cash paid for deposits to savings accounts Cash paid to purchase marketable securities Cash paid to purchase personalassets/retirementaccts. Total cash outflows from investing activities Netcash flows provided by investing activities 525,000 525,000 $ 525,000 $ (510,000) 400,000 400,000 $ 400,000 CASH FLOWS FROM FINANCING ACTIVITIES lows Proceeds from operating loans and short-term notes Proceeds from term debt financing Cash received from capital contributions Total cash inflows from financing activities Dumows Cash repaymentofoperating and short-term loans Cash repaymentofterm debl-scheduled Cash repaymentoftorm debl-unscheduled Cash repaymentofcapital leases Cash payments of dividends and other capital distributions Total cash outflows from financing activities Netcash flows provided by financing activities 16,000 15,000 31,000 31,000 369,000 $ Netincrease (decrease) in cash flows Beginning of year cash balance End of year cash balance $ $ (16,000 113,000 97,000 2018 2019 Current Ratio Working Capital Working Capital Ratio Debt-to-Asset Ratio Debt-to Equity Ratio Equity-to-Asset Ratio Return on Assets Return on Equity Operating Profit Margin n/a n/a n/a Asset Turnover Ratio n/a Repayment Capacity Repayment Margin Coverage Ratio na n/a na $131,633 $102,633 2.49 Balance Sheet for Mini Tap 2018 2019 2018 2019 113,000 97,000 41,000 As of December 31, 2019 ASSETS CURRENT ASSETS Cash Savings & short-term deposits Marketable securities (at market) Accounts receivable Supplies Inventories: Raw 83,000 39.000 16,000 15,000 10,000 15,000 75,000 15,000 10,000 14.000 9,000 LIABILITIES AND OWNER EQUITY CURRENT LIABILITIES Accounts payable Credit line, short term notes Current portion of all term debt Accrued interest Accrued expenses Accrued business expenses Other accrued items Current portion-deferred taxes Other current liabilities - business Other current liabilities - personal Accrued taxes 21,000 3,000 24,000 4,000 Raw Inputs Intermediate Goods 27,000 25,000 2,492 1,359 Completed Goods Cash invested in work in progress Prepaid expenses Other current assets - business Other current assets - personal TOTAL CURRENT ASSETS 29,500 31,000 261,500 253,000 TOTAL CURRENT LIABILITIES 106,492 99,359 175,000 220,000 165,000 220,000 70,000 72,000 NONCURRENT ASSETS Breeding livestock (at market) Machinery equipment (at market) Investments in capital leased assets Investments in cooperatives Investments in other entities Retirement accounts Cash value of insurance policies Long-term financial assets, nonmarketable securities Business Real Estate smes Land Buildings Other noncurrent assets -business Other noncurrent assets-personal TOTAL NONCURRENT ASSETS NONCURRENT LIABILITIES Noncurrent portion of term business debt: Non-real estate debt: Maturity less than 10 years Maturity greather than or equal to 10 years Real estate debt: Maturity less than 10 years Maturity greather than or equal to 10 years Noncurrent portion-deferred taxes Other noncurrent liabilities - business Other noncurrent liabilities - personal 330,000 12,600 3,000 145,000 295,000 TOTAL NONCURRENT LIABILITIES 168,000 562,600 245,000 732,000 TOTAL LIABILITIES 274,492 661,959 OWNER EQUITY Contributed capital Retained earnings Valuation equity TOTAL OWNER EQUITY TOTAL LIABILITIES & OWNER EQUITY 100,000 112,009 20,000 232,009 506,500 100,000 188,641 34,400 323,041 985,000 TOTAL ASSETS 506,500 985.000 NOTES to accompany Financial Statements: Book values (cost less depreciation) Financial investments Other investments Machinery and equipment Real-estate land Real-estate buildings 70,000 50,000 185,000 70,000 50,000 215,000 140,000 285,000 MESIAL for Mini Tap Subtotall Total Line For the period: January 1.2018 fo: December 31, 2018 Hem REVENUES AND ADJUSTMENTS Sales Cash receipts Other business income Accrual adjustments: Inventories Accounts Receivable 910,000 (1) (2) -2,000 15,000 (3) 14) Gross revenue 923,000 >> $923,000 (5) 650,000 (6) OPERATING AND INTEREST EXPENSES AND ADJUSTMENTS Operating Expenses: Cash operating expenses Accrual adjustments: Accounts payable Prepaid Expenses Supplies Work in progress Other accrued expenses and items 2,000 1,500 1,000 0 1,000 (7) (8) (9) (10) (11) 50,000 (12) 700,500 (13) 17,000 4,000 (15) 21,000 (16) 721,500 >> Depreciation Total Operating Expense Interest Expenses: Amountofinterestpaid in cash Accrual adjustments : Accrued interest Total Interest Expense Total Operating and InterestExpense Netincome from operations Gainslosses on sales of capital assets Netincome before taxes and non-business adjustments NON-BUSINESS ITEMS Non-business wages Non-business interestand dividends Other non-business income Gains/osses on sales of nonbusiness assets $721,500 (17) $201,500 (18) -$5,000 (19) $196,500 (20) (21) 5,000 (23) (24) Total nonbusiness income 5,000 >> $5,000 (25) Net income before taxes $201,500 (26) 48,000 (27) TAXEXPENSES AND ADJUSTMENTS Amountoftax paid in cash Accrual adjustments: Income and social security taxes Current portion of deferred taxes 3,000 -1,133 (28) (29) Total Tax Expense 49,868 >> $49,868 (30) NET INCOME $151,633 (31) STATEMENT OF CASH FLOWS for illini Tap Subtotal Total 910,000 5.000 915,000 915,000 For the period: January 1, 2018 : December 31, 2018 Hem CASH FLOWS FROM OPERATING ACTIVITIES Infows Cash received from business sales/receipts Cash received from netnonbusiness income Totalcash inflows from operating activities Dumows Cash paid for operating expenses Cash paid for operating &s. 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 ownerfamily living Totalcash outflows from operating activities Netcash flows provided by operating activities 650,000 2,500 14,500 48,000 75.000 790,000 $ $ 790,000 125,000 15,000 15,000 15,000 CASH FLOWS FROM INVESTING ACTIVITIES hows Cash received on sale of machinery/equipmentreal estate Cash received from sale of internally transferred capital Cash received from withdrawals of savings Cash received from sale of personal assets/retirementacets. Total cash inflows from investing activities Outows Cash paid to purchase machinery equipmentrealestate Cash paid to purchased productive capital items Cash paid for deposits to savings accounts Cash paid to purchase marketable securities Cash paid to purchase personalassets/retirementaccts. Total cash outflows from investing activities Netcash flows provided by investing activities 525,000 525,000 $ 525,000 $ (510,000) 400,000 400,000 $ 400,000 CASH FLOWS FROM FINANCING ACTIVITIES lows Proceeds from operating loans and short-term notes Proceeds from term debt financing Cash received from capital contributions Total cash inflows from financing activities Dumows Cash repaymentofoperating and short-term loans Cash repaymentofterm debl-scheduled Cash repaymentoftorm debl-unscheduled Cash repaymentofcapital leases Cash payments of dividends and other capital distributions Total cash outflows from financing activities Netcash flows provided by financing activities 16,000 15,000 31,000 31,000 369,000 $ Netincrease (decrease) in cash flows Beginning of year cash balance End of year cash balance $ $ (16,000 113,000 97,000 2018 2019 Current Ratio Working Capital Working Capital Ratio Debt-to-Asset Ratio Debt-to Equity Ratio Equity-to-Asset Ratio Return on Assets Return on Equity Operating Profit Margin n/a n/a n/a Asset Turnover Ratio n/a Repayment Capacity Repayment Margin Coverage Ratio na n/a na $131,633 $102,633 2.49