Property and Equipment Land 1957500 Building 3250000 Owners Equity Furnishings

Property and equipment land 1957500 building 3250000

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Property and Equipment Land 1,957,500 Building 3,250,000 Owners’ Equity Furnishings and Equipment 1,850,000 Paid in Capital 3,000,000 Accumulated Depreciation (1,185,000) Common Stock 750,000 Net Property and Equipment 5,872,500 Retained Earnings 2,865,000 Total Owners’ Equity 6,615,000 Other Assets 170,000 TOTAL ASSETS 11,800,000 11,800,000 Aidan's Lodge Balance Sheet December 31 This Year LIABILITIES AND OWNERS’ EQUITY TOTAL LIABILITIES AND OWNERS’ EQUITY
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Chapter 4, Question 5 Rachel's Restaurant Balance Sheet December 31, This Year $ % ASSETS Current Assets Cash 57,317 4.5% Marketable Securities 130,769 10.4% Net Receivables 80,000 6.3% Inventories 34,545 2.7% Total Current Assets 302,631 24.0% Investments 248,837 19.7% Property and Equipment Land 206,053 16.3% Building 418,665 33.2% Furnishings and Equipment 205,556 16.3% Less Accumulated Depreciation ### -10.7% Total Property and Equipment-Net 694,845 55.1% Other Assets 15,814 1.3% Total Assets 1,262,127 100.0% LIABILITIES AND OWNERS’ EQUITY Current Liabilities Accounts Payable 142,439 11.3% Notes Payable 31,905 2.5% Other Current Liabilities 147,907 11.7% Total Current Liabilities 322,251 25.5% Long-Term Liabilities Long-Term Debt 218,272 17.3% Total Liabilities 540,523 42.8% Owners’ Equity Common Stock 78,947 6.3% Paid in Capital 324,324 25.7% Retained Earnings 318,333 25.2% Total Owners’ Equity 721,604 57.2% TOTAL LIABILITIES AND OWNERS’ EQUITY 1,262,127 100.0% Select Chain Percentages (Vertical Analysis)
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Cash 6.70% Inventories 1.30% Accounts Payable 10.50% Notes Payable 1.10% a. Compare Rachel’s cash % with the chain units' %. Is it higher or lower? What does this mean? Answer: b. Compare Rachel’s inventories % with the chain units' %. Is it higher or lower? What does this mean? Answer: c. Compare Rachel’s accounts payable % with the chain unit’s %. Is it higher or lower? What does this mean? Answer: d. Compare Rachel’s notes payable % with the chain units’ %. Is it higher or lower? What does this mean? Answer:
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Chapter 4, Question 6 Rachel's Restaurant Balance Sheet December 31 Last Year Versus This Year Last Year This Year $ Change ASSETS Current Assets Cash 63,049 57,317 -5,732 Marketable Securities 104,615 130,769 26,154 Net Receivables 64,000 80,000 16,000 Inventories 48,363 34,545 -13,818 Total Current Assets 280,027 302,631 22,604 Investments 323,488 248,837 -74,651 Property and Equipment Land 206,053 206,053 0 Building 418,665 418,665 0 Furnishings and Equipment 267,223 205,556 -61,667 Less Accumulated Depreciation -142,710 -135,429 7,281 Net Property and Equipment 749,231 694,845 -54,386 Other Assets 12,651 15,814 3,163 TOTAL ASSETS 1,365,397 1,262,127 -103,270 LIABILITIES AND OWNERS’ EQUITY Current Liabilities Accounts Payable 253,354 142,439 -110,915 Notes Payable 38,286 31,905 -6,381 Other Current Liabilities 192,279 147,907 -44,372 Total Current Liabilities 483,919 322,251 -161,668 Long-Term Liabilities Long-Term Debt 102,560 218,272 115,712 Total Liabilities 586,479 540,523 -45,956 Owners’ Equity Common Stock 102,631 78,947 -23,684 Paid in Capital 421,621 324,324 -97,297 Retained Earnings 254,666 318,333 63,667 Total Owners’ Equity 778,918 721,604 -57,314 TOTAL LIABILITIES AND OWNERS’ EQUITY 1,365,397 1,262,127 -103,270 a. Rachel wanted to try to decrease her accounts receivable this year. Did she do this? Answer:
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b. Rachel wanted to try to reduce her inventories this year to be more in line with the chain's aver Did she do this?
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