5. Having completed the vertical analysis of her balance sheet (from Question 4), Rachel now wants to complete a horizontal analysis of her balance sheet comparing last year to this year Rachel's Restaurant Balance Sheet December 31 Last Year Versus This Year ASSETS Current Assets Cash Marketable Securities Net Receivables Inventories Total Current Assets Investments Property and Equipment Land Building Furnishings and Equipment Less Accumulated Depreciation Net Property and Equipment Other Assets TOTAL ASSETS LIABILITIES AND OWNERS' EQUITY Current Liabilities Accounts Payable Notes Payable Other Current Liabilities Total Current Liabilities Last Year 63,049 104,615 64,000 48,363 280,027 323,488 206,053 418,665 267,223 142,710 12,651 253,354 38,286 192,279 This Year 57,317 (5,732) 130,769 26,154 80,000 10,000 34,545 (13,818) 22.604 302.0031 248,837 (74.651) 206,053 0 418,665 0 205,556 (61.667) (7.281) (54.386) 135,429 15,814 $ Change 142,439 31,905 147,907 % Change (9.1%) 25.0% 25.0% 28.0% 8.15% (23.1%) 0.0% 0.0% (23.1%) (5.1%) 17.3%

5. Having completed the Name: (1) Help Rachel complete her horizontal analysis by filling in the gray blanks in the balance sheet above. (10 points) (2) Rachel wanted to try to decrease her accounts receivable this year. Oid she do this? (2. points) (3) Rachel wanted to try to reduce her inventories this year to be more in line with the chain's average inventories. Did she do this? (2 points) (4) Rachel wanted to reduce her accounts payable this year. Did she do this? (2 points) (5) Rachel wanted to pay off more of her total current liabiities this year. Did she do this? [2 points) (6) Based on the changes reported in her balance sheet, do you think Rachel's restaurant likely made a profit this year? Why or why not? (2 points)