You are provided with the following information regarding current assets and current liabilities of a restaurant operation for two successive years.

Calculate the following for Years 0006 and 0007.

a. Working capital

b. Current ratio

c. Quick ratio Sales revenue for Year 0007 is $544,800. The composition of sales revenue is cash 36%, credit card sales revenue 61.5%, and accounts receivable credit sales revenue of 2.5%. For Year 0007, calculate the following:

d. Credit card receivables as a percentage of credit card sales revenue

e. Credit card receivables turnover ratio

f. Credit card average collection period g. Accounts receivable as a percentage of accounts receivable credit sales revenue h. Accounts receivable turnover ratio i. Accounts receivable average collection period j. Cost of sales was $212,472; calculate cost of sales as a percentage of sales revenue k. Comment on what these ratios tell you about the restaurant.LO1

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Current Assets Year 0006 Cash $12,778 Year 0007 $17,765 Credit card receivables 2,442 2,815 Accounts receivable 580 420 Marketable securities 12,000 16,000 Inventories Prepaid expenses Total Current Assets 6,100 7,100 2,400 2,600 $36,300 $46,700 Current Liabilities Year 0006 Year 0007 Accounts payable Accrued expenses payable Taxes payable Interest payable Current mortgage payable Total Current Liabilities $ 10,410 $12,400 3,760 6,200 6,800 8,400 500 800 11,200 9,900 $32,670 $37,700