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Please answer fully P 4 . 1 0 A restaurant has the following statistical information calculated from its financial statements for the past three years:
Please answer fully P A restaurant has the following statistical information calculated from its
financial statements for the past three years:
Using this information, answer each of the following questions and ex
plain your answer. A simple yes, no more, less, or maybe won't do A
comment is required in each case.
a Are current assets in relation to current liabilities increasing or
decreasing?
b Is the restaurant becoming more or less efficient in the collection of
its credit card receivables?
c Is the restaurant becoming more or less efficient in the collection of
its accounts receivable?
d Over the threeyear period, has more or less money been tied up in
food inventory?
e With the stockholders' viewpoint in mind, is profitability improving
or not improving?
f If the restaurant needed to borrow capital through longterm debt,
would it be easier to find a lender now than three years ago?
g Has the restaurant been using leverage to the advantage of the stock
holders over the threeyear period?
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