STATEMENTS OF CASH FLOWS For the periods ended December 31, 2016 and December 26, 2015 (Expressed in thousands of Conodian dollars) 2016 2015 $ (975) $ (1,153) 1,168 403 1,091 374 86 211 53 238 (21) CASH PROVIDED BY (USED IN) Operating activities Net loss for the period Items not involving cash Depreciation of property and equipment Amortization of intangible assets Share-based compensation expense Deferred income taxes (note 19) Loss (gain) on disposal of capital related items Change in fair value of interest rate swap Inote 5) Changes in non-cash working capital & other inote 21) Cash used in (provided by operating activities Investing activities Proceeds from disposal of capital related items Cash payments for capital expenditures (note 21) Cash payments for intangible assets (note 21) Notes receivable repayment (issuance) Cash used in investing activities 4 225 (77) (2,298) (1,253) (1,177) (585) 497 334 (382) (393) 76 (365) (1,942) (733) (5) (2,183) continued 2016 2015 Financing activities Repayment of term loan (note 14) (6,000) (5,000) Repayment of swap (notes) (70) Proceeds from new term loan 8,000 Transaction costs (458) Cash provided by used in) financing activities 1,542 (5,070) Increase (decrease) in cash and cash equivalents during the period (76) (7,838) Cash and cash equivalents-Beginning of the period 3,080 10,918 Cash and cash equivalents-End of the period $ 3,004 $ 3,080 See accompanying notes to financial statements. Supplemental cash flow information is provided in note 21. TVU UNITED EXHIBIT 5.190 Excerpt from the Second Cup Ltd's 2016 Annual Report 21. Supplemental cash flow information 2016 2015 Changes in non-cash working capital & other inflow (outflow): Trade and other receivables Inventories Prepaid expenses and other assets Accounts payable and accrued liabilitles Provisions Other liabilities Gift card liability Deposits from franchisees & change in restricted cash Income taxes $ 411 29 176 (1,658) (483) (282) (70) (566) 155 $12,288) $ 592 (8) 58 (651) (388) (103) (172) (517) 12 $(1,177) Cash payments for capital expenditures Cash payments for capital expenditures Cash payments for intangible assets $ (382) (393) $ (775) $(1,942) (733) $12,675) Supplementary information Interest paid Income taxes pald $ 318 $ $ 523 $ - 1 Your answer is partially correct. Calculate Second Cup's net free cash flow for 2016 and 2015. (Show amounts that decrease cash flow with either a-sign e.g. - 15,000 or in parenthesis e.g. (15,000). Enter amounts in thousands.) 2016 2015 Net free cash flow $ $ Is the trend positive or negative? Positive e Textbook and Media Assistance Used Your answer is incorrect. Second Cup's total liabilities were $22,038 at December 31, 2016, and $22,558 at December 26, 2015. Determine the company's cash flows to total liabilities ratio. (Round answers to 1 decimal place, e.g. 52.5%.) 2016 2015 Cash flows to total liabilities ratio % % e Textbook and Media Assistance Used