KLAUSEN is a Cambridge restaurant featuring a gourmet wine and entre menu. The following are the accounts from which to build KLAUSEN's Balance Sheet for the year ending December 31, 2020. Produce a complete Balance Sheet, appropriately titled and calculated.

Accounts Receivable

$45,000

Cash

$67,000

Credit Line Used

$52,100

Common Shares

$100,000

Short Term Loan

$56,000

Mortgage

$224,400

Prepaid Rent

$14,500

Retained Earnings

$35,000

Accumulated Depreciation

$38,000

Accounts Payable

$78,000

Client List

$22,500

Inventory

$115,000

Building & Equipment

$325,000

Accrued Salaries

$5,500

( Chose ONLY 2 )

1.We have looked at various ways a Marketer should evaluate potential investments that they may wish to propose to management. Explain the 3 ways we learned how to evaluate a potential investment. (3 marks). How did we use the outcome of our analysis to choose between options? (4 marks)

2.List and explain three types of inventories that a company is likely to carry at all times. Explain how a Marketer has an impact on how much of each type of inventory a company has/needs at any point in time. (7 marks)

3.Ratios have limitations. Identify and explain five of them? (5 marks) What is the difference between Horizontal and Vertical Analysis? (2 marks)

4.A Cash Budget provides an important tool for financial analysts and operating managers. Explain the key components of the cash budget. (5 marks) Provide (and explain) two important benefits that a cash budget provides.(2 marks)