The Koebels have met with representatives of Biscuits, a public company, and Coffee Beans, a private company. Both companies have offered to purchase the shares of Koebel's Family Bakery Ltd. The financial statements, including the statement of cash flows, for Koebel's Family Bakery have been prepared for analysis and the Koebels are meeting to discuss the results of these financial statements with representatives of both of these companies. These meetings will enable Janet and Brian to decide upon the best alternative as they move forward with their decision to sell their shares. Natalie and Daniel have been offered employment at each of these organizations and want to ensure these companies have the ability to continue to operate.

Selected information for Koebel's Family Bakery, Biscuits, and Coffee Beans for 2016 follow:

Instructions
(a) Calculate the cash current debt coverage ratio, cash total debt coverage ratio, and free cash flow for each company.
(b) Compare the provision and use of cash in each of the three activities by each company.
(c) Based on the information provided in parts (a) and (b), identify why Biscuits Ltd. and Coffee Beans Ltd. are likely pursuing an investment in Koebel's Family Bakery Ltd.
(d) Based on the information provided in parts (a) and (b), identify to the Koebels some of the issues they should consider before making the decision to sell their shares and/or to be employed by one of these companies?

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Koebels Family Bakery Ltd Biscuits Ltd Coffee Beans Ltd. SG99-000 $1,594,000 (1,448,000) Profit $ 2,628,000 S6,821,000 (3,397,000) (37.0711.762.000 $199,629 Net cash provided by operating activities Net cash used by investing activities Net cash used by financing activities Net (decrease) increase in cash Cash, beginning of year Cash, end of year $235,279 (L5/K33) (744,000) 40,375 159,068 $199,443 2,252,000 3,914,000 S 32,000 Average current liabilities Average total liabilities Net capital expenditures Dividends paid s 31,121 %1,5'il 144,000 120,000 $16,233,000 27,758,500 3,414,000 580,000 $3,759,000 8,879,000 1,448,000