60%(5)3 out of 5 people found this document helpful
This preview shows page 5 - 13 out of 26 pages.
Property and EquipmentLand1,957,500 Building3,250,000 Owners’ EquityFurnishings and Equipment1,850,000 Paid in Capital3,000,000 Accumulated Depreciation(1,185,000) Common Stock750,000 Net Property and Equipment5,872,500 Retained Earnings2,865,000 Total Owners’ Equity6,615,000 Other Assets170,000 TOTAL ASSETS11,800,000 11,800,000 Aidan's Lodge Balance Sheet December 31 This YearLIABILITIES AND OWNERS’ EQUITY TOTAL LIABILITIES AND OWNERS’ EQUITY
Chapter 4, Question 5Rachel's Restaurant Balance Sheet December 31, This Year$%ASSETS Current AssetsCash57,3174.5%Marketable Securities130,76910.4%Net Receivables80,0006.3%Inventories34,5452.7%Total Current Assets302,63124.0%Investments248,83719.7%Property and EquipmentLand206,05316.3%Building418,66533.2%Furnishings and Equipment205,55616.3%Less Accumulated Depreciation###-10.7%Total Property and Equipment-Net694,84555.1%Other Assets15,8141.3%Total Assets1,262,127100.0%LIABILITIES AND OWNERS’ EQUITYCurrent LiabilitiesAccounts Payable142,43911.3%Notes Payable31,9052.5%Other Current Liabilities147,90711.7%Total Current Liabilities322,25125.5%Long-Term LiabilitiesLong-Term Debt218,27217.3%Total Liabilities540,52342.8%Owners’ EquityCommon Stock78,9476.3%Paid in Capital324,32425.7%Retained Earnings318,33325.2%Total Owners’ Equity721,60457.2%TOTAL LIABILITIES AND OWNERS’ EQUITY1,262,127100.0%Select Chain Percentages (Vertical Analysis)
Cash6.70%Inventories1.30%Accounts Payable10.50%Notes Payable1.10%a. Compare Rachel’s cash % with the chain units' %. Is it higher or lower? What does this mean?Answer: b. Compare Rachel’s inventories % with the chain units' %. Is it higher or lower? What does this mean?Answer: c. Compare Rachel’s accounts payable % with the chain unit’s %. Is it higher or lower? What does this mean?Answer: d. Compare Rachel’s notes payable % with the chain units’ %. Is it higher or lower? What does this mean?Answer:
Chapter 4, Question 6Rachel's Restaurant Balance Sheet December 31 Last Year Versus This YearLast YearThis Year$ ChangeASSETSCurrent AssetsCash63,04957,317-5,732Marketable Securities104,615130,76926,154Net Receivables64,00080,00016,000Inventories48,36334,545-13,818Total Current Assets280,027302,63122,604Investments323,488248,837-74,651Property and EquipmentLand206,053206,0530Building418,665418,6650Furnishings and Equipment267,223205,556-61,667Less Accumulated Depreciation-142,710-135,4297,281Net Property and Equipment749,231694,845-54,386Other Assets12,65115,8143,163TOTAL ASSETS1,365,3971,262,127-103,270LIABILITIES AND OWNERS’ EQUITYCurrent LiabilitiesAccounts Payable253,354142,439-110,915Notes Payable38,28631,905-6,381Other Current Liabilities192,279147,907-44,372Total Current Liabilities483,919322,251-161,668Long-Term LiabilitiesLong-Term Debt102,560218,272115,712Total Liabilities586,479540,523-45,956Owners’ EquityCommon Stock102,63178,947-23,684Paid in Capital421,621324,324-97,297Retained Earnings254,666318,33363,667Total Owners’ Equity778,918721,604-57,314TOTAL LIABILITIES AND OWNERS’ EQUITY1,365,3971,262,127-103,270a. Rachel wanted to try to decrease her accounts receivable this year. Did she do this?Answer:
b. Rachel wanted to try to reduce her inventories this year to be more in line with the chain's averDid she do this?