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Hi guys, i am trying to get the answers for the following questions. i am attacing the screenshot of the previous questioner. it's urgent so

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Hi guys, i am trying to get the answers for the following questions. i am attacing the screenshot of the previous questioner. it's urgent so i hope you guys answer my question quickly. thank you.

Chapter 4, Question 1

Kwan?s boss has asked him to evaluate his current assets on his balance sheet.

However, Kwan is not exactly sure what his current assets are. Help Kwan by examining

his balance sheet accounts and answering the following questions.

Balance Sheet Accounts

Investments

Other Current Liabilities

373,256

73,954

Building

627,998

Accounts Payable

213,659

Long-Term Debt

395,315

Cash

85,976

Furnishings and Equipment

Notes Payable

308,334

47,858

Marketable Securities

196,154

Paid in Capital

486,486

Accumulated Depreciation

203,144

Inventories

Common Stock

51,818

133,421

Prepaid Expenses

15,000

Retained Earnings

477,500

Land

309,080

Net Receivables

40,000

Other Assets

23,721

Current Asset Accounts Dollar Amount

Total Current Assets

a. Identify the current assets.

b. List them in the order of liquidity.

c. Calculate Total Current Assets.

d. Explain to Kwan why each current asset is listed in its particular order of

liquidity.

Answers:

a.

b.

c.

d.

Chapter 4

Q1

Chapter 4, Question 2

Aidan Norton owns Aidan?s Lodge in a rural Midwestern town. His accountant is out with the u,

and Aidan has to develop his balance sheet without his accountant?s help. Using the following

balance sheet accounts, help Aidan complete his balance sheet.

Balance Sheet Accounts

Investments

1,275,000

Paid in Capital

3,000,000

Other Current Liabilities

1,590,000

Accumulated Depreciation

1,185,000

Building

3,250,000

Inventories

380,000

Accounts Payable

1,460,000

Common Stock

750,000

Long-Term Debt

1,800,000

Retained Earnings

2,865,000

Land

1,957,500

Net Receivables

2,675,000

Cash

587,500

Furnishings and Equipment

1,850,000

Notes Payable

335,000

Marketable Securities

Other Assets

840,000

Aidan's Lodge

Balance Sheet December 31, 20XX

Assets

Current Assets

Liabilities and Owners? Equity

Current Liabilities

Total Current Liabilities

Total Current Assets

Long-Term Liabilities

Property and Equipment

Total Liabilities

Owners? Equity

Net Property and Equipment

Total Owners? Equity

Total Assets

Chapter 4

Q2

Total Liabilities and Owners? Equity

170,000

Chapter 4, Question 3

Rachel owns a franchise restaurant of a large restaurant chain in New England. Help

her calculate a vertical analysis of her balance sheet.

Rachel's Restaurant

Balance Sheet December 31, 20XX

$

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

%

57,317

130,769

80,000

34,545

248,837

206,053

418,665

205,556

135,429

15,814

Liabilities and Owners? Equity

Current Liabilities

Accounts Payable

Notes Payable

Other Current Liabilities

Total Current Liabilities

142,439

31,905

147,907

Long-Term Liabilities

Long-Term Debt

Total Liabilities

218,272

Owners? Equity

Common Stock

Paid in Capital

Retained Earnings

Total Owners? Equity

78,947

324,324

318,333

Total Liabilities and Owners? Equity

Rachel has been asked by her regional manager to compare her

balance sheet percentages with the averages of the chain.

Select percentages of the chain are below:

Select Chain Percentages (Vertical Analysis)

Cash

Inventories

Accounts Payable

Notes Payable

6.70%

1.30%

10.50%

1.10%

a. Compare Rachel?s Cash % with the chain?s %. Is it higher or lower?

What might this mean?

b. Compare Rachel?s Inventories % with the chain?s %. Is it higher or

lower? What might this mean?

c. Compare Rachel?s Accounts Payable % with the chain?s %. Is it

higher or lower? What might this mean?

d. Compare Rachel?s Notes Payable % with the chain?s %. Is it higher

or lower? What might this mean?

Answers:

a.

b.

c.

d.

Chapter 4

Q3

Chapter 4, Question 4

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

Marketable Securities

Net Receivables

Inventories

Total Current Assets

63,049

104,615

64,000

48,363

57,317

130,769

80,000

34,545

323,488

248,837

206,053

418,665

267,223

142,710

206,053

418,665

205,556

135,429

12,651

15,814

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

Investments

Property and Equipment

Land

Building

Furnishings and Equipment

Less Accumulated Depreciation

Net Property and Equipment

Other Assets

Total Assets

Liabilities and Owners? Equity

Total Liabilities and Owners? Equity

a. Rachel's regional manager told her to try and decrease her accounts

receivable this year. Did she do this?

b. Rachel's regional manager told her to try and 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 a. through d. above, do

you think Rachel did a good job overall?

Answers:

a.

b.

c.

d.

e.

Chapter 4

Q4

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