Agnes L DeFranco Tho Jobs Puerto l Jaileen/Downloads/Agnes L DeFranco Thomas W.pdf OUESTIONS 1. Utilitzing the income statement and balance sheet provided, assist Ms. Blackwell with her analysis by calculating the following ratios for 2008. Current ratio Accounts receivable turmover Avorage collection poriod E Food inventory turnovor Fixed asset turnover Total asset turnover Profit margin Return on assets Roturn on oquity Long-term dobt to total capitalization Debt-to-equity ratio Time interost oarnod Fixed charge coverago Food cost porcontage Labor cost percentago Utlizing the calculations in question 1, analyze the ratios for Larry's Luncheon Spot. Addross any ratios that appear high or low, and explain why you think this is tho case Based on your analysa, would you ncommond that invostors buy stock in this company? Please oxpltan your answer Jaileen47@gn| Jobs puerto Rico Empleos :1 + Agnes-LDeFranco-Tho ownloads/Agnes L Defranco Thomas W.pdf Larry's Lunchoon Spot Income Statemont For the Month Ended September 30, 2008 Revenues: Food Cost of Salos: Food Gross Profit Oporating (Controllable) Expensos S412.000,000 $101,352,000 $310,648,000 Porcent 100.0 24.6 75.4 Salarios and Wagos Employoo Bonofits S107,120,000 23.484.000 26.0 5.7 urito) "Jaileen47@gn Agnes-L DeFranco_Tho 1w Jobs puerto Rico i rs/Ja Agnes L DeFranco_Thomas W.pdf CHAPTER 3ANALYZING FINANCIAL STATEMENTS Diroct Operating Expenses Marketing Utilitios Administrative and Goneral Ropairs and Maintonance 13,678,400 12,318,800 17,950,000 5,850,400 $256,446,830 18.5 3.3 3.0 4.4 14 62.2 Total Operating Expenses Operating Income $ 54,201,170 13.2 s 22,660,000 16,502,000 8,450,000 $ 47,612.000 5.5 4.0 2.1 11.6 Rent Interest Total Other Expensos $ 6,589,170 S 4,944,000 S 1.645.170 Income Before Income Taxes 1.6 1.2 Less: Income Taxos Not Income Larry's Luncheon Spot Balance Sheets As of Month Ended Septomber 30, 2x 2008 2007Change Cash Accounts Receivablo Short-term investments Food Inventory Prepaid Rent $ 1,502,153 1,265,105 237,048 89,200 2,985,000 3,850,000 2,034,000 2,895,800 468,5003,381,500 224,000 1,100,0002850,000 1,750,000) $ 11,471,153 9,289.405 $ 2,181,748 1,810,000 Total Current Assets Furniture, Fixtures, and Equipment (FF&E) S 120,300,000 $ 105,050,000 $ 15,250,000 (160,000,000)(158,600,000)1400,000) 190,290,000 195 890,000 (6,600,000) 637,000 (141.400) s 151,085,600 $ 142.977,000 s8.108,600 Buildings Long-term Investments 495,600 Long-torm Assets Total Assets $162,556,753 $152,266,405 $10,290,348 ANALYSIS OF FINANCIAL STATEMENTS 89
