Interpreting balance sheet changes. Exhibit 2.14 presents a common-size balance sheet for Outback Steakhouse. a restaurant chain, for two recent years.

a. Identify the ways in which the structure of Outback Steakhouse's assets and the structure of its financing correspond to what one would expect of a restaurant chain. What aspects of the structure of its assets and the structure of its financing are not what one would expect?

b. Identify the major changes in the nature and mix of assets and the nature and mix of financing between the two year-ends and suggest possible reasons for the changes.

c. "An increase in the common-size balance sheet percentage between two year-ends for a particular balance sheet item (for example, cash) does not necessarily mean that its dollar amount increased." Explain.