Rachel's regional manager (from Question 3) has asked Rachel to calculate a horizontal analysis of her balance sheet. Help Rachel calculate her horizontal analysis.

RACHEL’S RESTAURANT Balance Sheet December 31, 20XX Last Year | This Year | $ Change | % Change Assets Current Assets Cash 63,049 57,317 Marketable Securities 104,615 130,769 Net Receivables 64,000 80,000 Inventories 48,363 34,545 pele Total Current Assets ees Ree Investments 323,488 248,837 Property and Equipment Land 206,053 206,053 Building 418,665 418,665 267,223 205,556 Less Accumulated Depreciation 142,710 135,429 Furnishings and Equipment Net Property and Equipment Other Assets 12,651 15,814 Total Assets Liabilities and Owners’ Equity Current Liabilities 953,354 38,286 192,279 142,439 31,905 147,907 ¢ ——

Accounts Payable Notes Payable Other Current Liabilities Total Current Liabilities Long-Term Liabilities 218,272 ——_ Long-Term Debt 102,560 Total Liabilities Owners’ Equity Common Stock 102,631 78,947 Paid in Capital 421,621 324,324 Retained Earnings 254,666 318,333 Total Owners’ Equity a

a. Rachel’s regional manager told her to try to decrease her accounts receivable this year. Did she do this?

b. Rachel’s regional manager told her to try to reduce her inventories this year to be more in line with the chain’s average inventories. Did she do this?

c. Rachel's regional manager told her to pay more of her accounts payable this year.
Did she do this?

d. Rachel's regional manager told her to pay off more of her total current liabilities this year. Did she do this?

e. Based on her ability to achieve the goals outlined in Questions a through

d, do you think Rachel did a good job overall?