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can u please just do the questions after D Land P4.7 You have the following information from a restaurant operation: Balance Sheets, December 31 Assets
can u please just do the questions after D
Land P4.7 You have the following information from a restaurant operation: Balance Sheets, December 31 Assets Year 0007 Year 0008 Cash $ 6,100 $ 11,200 Credit card receivables 7,920 9,240 Accounts receivable 5,280 6,160 Food inventory 14,600 13,900 Prepaid expenses 3,800 4,500 32,000 32,000 Building 315,800 323,200 Equipment 66,640 73,200 Furnishings 16,660 18,300 Accumulated depreciation ( 113,700) ( 124,500) Total Assets $355,100 $367,200 Liabilities & Stockholders' Equity Year 0007 Year 0008 Accounts payable $ 16,700 $ 12,500 Bank note payable 4,900 3,600 Income tax payable 12,500 12,600 Accrued expenses payable 7,100 7,500 Mortgage payable (current) 10,400 12,100 Long-term mortgage payable 192,000 180,900 Common stock 10,000 10,000 Retained earnings 101,500 128,000 Liabilities & Stockholders' Equity $355,100 $367,200 Income Statement (Condensed) For the Year Ending December 31, 0008 Sales revenue* $742,600 Cost of sales $301,900 Operating expenses 381,200 Total Operating Costs ( 683,100) Operating income, before interest and tax $ 59,500 Interest expense (19,400) Income before tax $ 40,100 Income tax (12,600) Net Income $ 27,500 *Sales revenue consisted of: 22% cash, 64% credit cards, and 14% accounts receivable. From the information given, calculate the following: a. Working capital for Years 0007 and 0008 b. Current ratio for Years 0007 and 0008 c. Credit card receivables as a percentage of credit card revenue for Year 0008 d. Credit card receivables turnover ratio based on credit card revenue for Year 0008 e. Credit card receivables average collection period ratio, based on credit card revenue for Year 0008 f. Accounts receivable as a percentage of accounts receivable credit revenue for Year 0008 g. Accounts receivable turnover ratio based on accounts receivable credit revenue for Year 0008 h. Accounts receivable average collection period based on accounts re- ceivable credit revenue for Year 0008 i. Total assets to total liabilities for Years 0007 and 0008 j. Total liabilities to total assets for Years 0007 and 0008 k. Total liabilities to stockholders' equity for Years 0007 and 0008. 1. Net return on total assets for Year 0008 m. Number of times interest is earned for Year 0008 n. Net income to total revenue ratio for Year 0008 0. Return on stockholders' equity for Year 0008 p. Food inventory turnover ratio for Year 0008 4. Property, plant, and equipment (fixed assets) turnover ratio for Year 0008 Comment on any of the calculated ratios that appear unusually high or low or totally out of range of what is considered acceptableStep by Step Solution
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