6. Having completed the vertical analysis of her balance sheet (from Question 5), Rachel now wants to complete a horizontal analysis of her balance sheet comparing last year to this year. Help Rachel complete her horizontal analysis and then answer the questions that follow. Rachel's Restaurant Balance Sheet December 31 Last Year Versus This Year Last Year ($) This Year ($) $ Change % Change ASSETS Current Assets Cash 63,049 5 7,317 Marketable Securities 104,615 130.769 Net Receivables 64,000 80,000 Inventories 48,363 34.545 Total Current Assets 323,488 248,837 Investments Property and Equipment Land Building Furnishings and Equipment Less Accumulated Depreciation Net Property and Equipment Other Assets TOTAL ASSETS 206,053 418,665 267,223 142,710 206,053 418,665 205,556 135.429 12,651 15,814 LIABILITIES AND OWNERS' EQUITY Current Liabilities Accounts Payable Notes Payable Other Current Liabilities Total Current Liabilities 253,354 38,286 192,279 142.439 31,905 147.907 Long-Term Liabilities Long-Term Debt Total Liabilities 102,560 218.272 Owners' Equity Common Stock Paid in Capital Retained Earnings Total Owners' Equity 102,631 421,621 254,666 78.947 324,324 318,333 TOTAL LIABILITIES AND OWNERS' EQUITY a. Rachel wanted to try to decrease her accounts receivable this year. Did she do this? b. 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? c. Rachel wanted to reduce her accounts payable this year. Did she do this? d. Rachel wanted to pay off more of her total current liabilities this year. Did she do this? e. Based on the changes reported in her balance sheet, do you think Rachel's restaurant likely made a profit last year? Why or why not