Prepare and analyze the Statement of Cash Flows for Year 2016 to 2018 given all the information below.

Assets 2016 2017 2018 2019 2020 $ 76,969 $ 0 71,584 107,664 20,419 $ 199,667 $ 0 110,272 129,680 17,414 $ 257,366 $ 53,297 67,042 76,408 11,558 $ 208,305 91,175 114,630 16,240 $ 299,014 $ 199,051 122,647 139,310 26,387 $ 487,395 $ 165,000 618,213 46,750 94,500 233,750 1,158,213 $1,357,878 $ 165,000 556,391 32,725 75,600 163,625 993,341 $1,250,707 $ 165,000 500,752 22,908 60,480 114,538 863,678 $1,071,983 $ 165,000 450,677 16,035 48,384 80,176 760,272 51,059,286 $ 165,000 405,609 11,225 38,707 56,123 676,664 $1,164,059 Current assets Cash and cash equivalents Accounts receivable Inventory Prepaid expenses Total current assets Fixed assets (net) Land Building Computer and equipment Furniture, fixtures, and equipment Kitchen equipment Total fixed assets Total assets Liabilities Current liabilities Bank indebtedness Deferred revenue Payables and accruals Income taxes payable Total current liabilities Long-term debt Long-term debt Total liabilities Shareholders' equity Capital stock (10,000 shares issued) Retained earnings Total shareholders' equity Total liabilities and shareholders' equity $0 $ 100,900 186,789 154,631 17,071 $ 459,391 $ 175,000 190,949 97,325 15,706 $ 478,980 SO 202,075 122,885 35,070 $360,030 205,601 176,544 35,289 $ 417,434 $ 219,276 177,636 69,708 $ 466,620 860,204 $1,319,595 710,623 $1,189,603 550,570 $ 910,600 379,315 $ 796,749 196,071 $ 662,691 $ 10,000 28,283 38,283 $1,357,878 $ 10,000 51,105 61,105 $1,250,707 $ 10,000 151,383 161,383 $1,071,983 $ 10,000 252,537 262,537 $1,059,286 $ 10,000 491,368 501,368 $1,164,059 2016 2017 2018 2019 2020 Sales Cost of sales $3,579,208 2,290,693 $1,288,515 $3,675,730 2,315,710 $1,360,020 $3,943,656 2,464,785 $1,478,871 $3,964,108 2,497,388 $1,466,720 $4,229,192 2,579,807 $1,649,385 Gross profit $ 209,117 127,368 92,538 3,074 53,688 716 25,269 16,035 $ 318,119 148,005 83,608 6,844 63,438 613 2,206 13,113 Expenses Administrative Advertising Depreciation and amortization Computer Credit card Bad debts Equipment rental Freight Insurance Interest and bank charges Interest on long-term debt Janitorial supplies Office and restaurant supplies Professional fees Repairs and maintenance Royalty fees Taxes and licences Telephone Travel Utilities Wages and benefits $ 214,608 127,083 164,871 5,464 55,136 0 12,271 16,210 10,022 4,248 53,770 48,373 132,242 4,186 75,952 128,651 1,682 9,919 8,031 115,562 95,000 $1,283,281 5,021 63,556 40,425 144,962 3,909 74,152 125,272 1,682 9,338 10,319 92,058 95,000 $1,206,612 $ 293,408 131,906 129,664 6,944 59,155 2,011 1,456 17,253 12,300 3,421 43,299 33,565 133,784 4,299 48,455 138,028 1,682 10,248 6,475 135,738 95,000 $1,308,091 $ 302,173 155,140 103,405 4,687 59,462 0 1,726 17,482 13,079 2,536 32,095 43,483 124,079 4,683 49,564 138,744 1,682 10,239 3,957 129,403 95,000 $1,292,619 18,059 13,855 1,588 20,108 39,084 129,500 4,481 47,560 148,022 1,682 10,195 9,113 145,347 95,000 $1,306,427 3,450 1,788 4,569 2,341 5,580 Other income Earnings before income taxes Provision for income taxes Net income 85,354 17,071 78,528 15,706 175,349 35,070 176,443 35,289 348,538 69,708 68,283 62,822 140,279 141,154 278,830 0 51,105 Retained earnings, beginning Net income Dividend Retained earnings, end 68,283 40,000 28,283 28,283 62,822 40,000 $ 51,105 140,279 40,000 $ 151,383 151,383 141,154 40,000 $ 252,537 252,537 278,830 40,000 $ 491,368 $ Historical Financial Results - Toronto Operations The menu of dishes was created by a celebrity chef, who regularly visits the restaurant. The chef is paid a royalty fee of 3.5% of gross revenue. The original cost of the current assets are as follows: Fixed assets (net) Land $165,000 Building 650,750 Computer and equipment 55,000 Furniture, fixtures, and equipment 105,000 Kitchen equipment 275,000 The capital assets are depreciated in the same manner as their capital cost allowance (CCA). The following CCA rates are used: building, 10%; computer equipment, 30%; furniture, fixtures, and equipment, 20%; and kitchen equipment, 30%. Deferred revenue represents the value of gift cards sold, but not yet redeemed. The company initially obtained a $1-million loan, which was repaid with blended payments over a five-year period, with interest of 7%. Alex has been paying himself an annual dividend of $40,000. He would like this dividend to continue into the future. In addition, Alex draws an annual salary of $95,000, which reflects the fair market value of the services he provides. Future Financial Results - Mississauga Operations The Mississauga location is expected to generate the same revenues, and net income, as the Toronto operation. Assets 2016 2017 2018 2019 2020 $ 76,969 $ 0 71,584 107,664 20,419 $ 199,667 $ 0 110,272 129,680 17,414 $ 257,366 $ 53,297 67,042 76,408 11,558 $ 208,305 91,175 114,630 16,240 $ 299,014 $ 199,051 122,647 139,310 26,387 $ 487,395 $ 165,000 618,213 46,750 94,500 233,750 1,158,213 $1,357,878 $ 165,000 556,391 32,725 75,600 163,625 993,341 $1,250,707 $ 165,000 500,752 22,908 60,480 114,538 863,678 $1,071,983 $ 165,000 450,677 16,035 48,384 80,176 760,272 51,059,286 $ 165,000 405,609 11,225 38,707 56,123 676,664 $1,164,059 Current assets Cash and cash equivalents Accounts receivable Inventory Prepaid expenses Total current assets Fixed assets (net) Land Building Computer and equipment Furniture, fixtures, and equipment Kitchen equipment Total fixed assets Total assets Liabilities Current liabilities Bank indebtedness Deferred revenue Payables and accruals Income taxes payable Total current liabilities Long-term debt Long-term debt Total liabilities Shareholders' equity Capital stock (10,000 shares issued) Retained earnings Total shareholders' equity Total liabilities and shareholders' equity $0 $ 100,900 186,789 154,631 17,071 $ 459,391 $ 175,000 190,949 97,325 15,706 $ 478,980 SO 202,075 122,885 35,070 $360,030 205,601 176,544 35,289 $ 417,434 $ 219,276 177,636 69,708 $ 466,620 860,204 $1,319,595 710,623 $1,189,603 550,570 $ 910,600 379,315 $ 796,749 196,071 $ 662,691 $ 10,000 28,283 38,283 $1,357,878 $ 10,000 51,105 61,105 $1,250,707 $ 10,000 151,383 161,383 $1,071,983 $ 10,000 252,537 262,537 $1,059,286 $ 10,000 491,368 501,368 $1,164,059 2016 2017 2018 2019 2020 Sales Cost of sales $3,579,208 2,290,693 $1,288,515 $3,675,730 2,315,710 $1,360,020 $3,943,656 2,464,785 $1,478,871 $3,964,108 2,497,388 $1,466,720 $4,229,192 2,579,807 $1,649,385 Gross profit $ 209,117 127,368 92,538 3,074 53,688 716 25,269 16,035 $ 318,119 148,005 83,608 6,844 63,438 613 2,206 13,113 Expenses Administrative Advertising Depreciation and amortization Computer Credit card Bad debts Equipment rental Freight Insurance Interest and bank charges Interest on long-term debt Janitorial supplies Office and restaurant supplies Professional fees Repairs and maintenance Royalty fees Taxes and licences Telephone Travel Utilities Wages and benefits $ 214,608 127,083 164,871 5,464 55,136 0 12,271 16,210 10,022 4,248 53,770 48,373 132,242 4,186 75,952 128,651 1,682 9,919 8,031 115,562 95,000 $1,283,281 5,021 63,556 40,425 144,962 3,909 74,152 125,272 1,682 9,338 10,319 92,058 95,000 $1,206,612 $ 293,408 131,906 129,664 6,944 59,155 2,011 1,456 17,253 12,300 3,421 43,299 33,565 133,784 4,299 48,455 138,028 1,682 10,248 6,475 135,738 95,000 $1,308,091 $ 302,173 155,140 103,405 4,687 59,462 0 1,726 17,482 13,079 2,536 32,095 43,483 124,079 4,683 49,564 138,744 1,682 10,239 3,957 129,403 95,000 $1,292,619 18,059 13,855 1,588 20,108 39,084 129,500 4,481 47,560 148,022 1,682 10,195 9,113 145,347 95,000 $1,306,427 3,450 1,788 4,569 2,341 5,580 Other income Earnings before income taxes Provision for income taxes Net income 85,354 17,071 78,528 15,706 175,349 35,070 176,443 35,289 348,538 69,708 68,283 62,822 140,279 141,154 278,830 0 51,105 Retained earnings, beginning Net income Dividend Retained earnings, end 68,283 40,000 28,283 28,283 62,822 40,000 $ 51,105 140,279 40,000 $ 151,383 151,383 141,154 40,000 $ 252,537 252,537 278,830 40,000 $ 491,368 $ Historical Financial Results - Toronto Operations The menu of dishes was created by a celebrity chef, who regularly visits the restaurant. The chef is paid a royalty fee of 3.5% of gross revenue. The original cost of the current assets are as follows: Fixed assets (net) Land $165,000 Building 650,750 Computer and equipment 55,000 Furniture, fixtures, and equipment 105,000 Kitchen equipment 275,000 The capital assets are depreciated in the same manner as their capital cost allowance (CCA). The following CCA rates are used: building, 10%; computer equipment, 30%; furniture, fixtures, and equipment, 20%; and kitchen equipment, 30%. Deferred revenue represents the value of gift cards sold, but not yet redeemed. The company initially obtained a $1-million loan, which was repaid with blended payments over a five-year period, with interest of 7%. Alex has been paying himself an annual dividend of $40,000. He would like this dividend to continue into the future. In addition, Alex draws an annual salary of $95,000, which reflects the fair market value of the services he provides. Future Financial Results - Mississauga Operations The Mississauga location is expected to generate the same revenues, and net income, as the Toronto operation