remake the balance sheet to meet the guidelines on the first picture. the format for the balance sheet is on the 2nd picture.

B. Balance Sheet Analysis: 1. Analyze the balance sheet line items by calculating AVG, Percentage Change and CAGR. What do the balance sheet trends imply about the operations of the Be Our Guest business? 2. Calculate the Total Loan to Shareholder/Total Assets ratio from 1994 to 1997. What is the trend in term of the percentage change from 1994 to 1997 and the CAGR from 1994? to 1997? What does this say about the money the shareholders take out of the business relative to the total assets of the business? Is this a value maximizing trend for the business? C. Summary: Based on the analysis above, what is the financial and operational condition of the firm? N Table 1. Balance Sheet Note: This is an example. Your tables may be different AVG . Chng CAGR Assets: Balance Sheet Account Analysis Accounts Receivable (a) Due from Officers & Employees Other Current Assets Total Current Assets Rental Equipment Net Property and Equipment Total Assets Liabilities: Borrowings under Bank Line of Credit Current Installments of Term Note Accounts Payable and Accounts Total Liabilities Retained Earnings Total Shareholders' Equity Total Loans to Shareholder Total Assets Exhibit 4 Be Our Guest, Inc. Balance Sheets December 31, 1994 1995 1996 1997 ASSETS Current Assets: Cash (Overdraft) (2,595) $ 565 $ 645 $ (3,498) Accounts Receivable (a) 228,333 303,430 303,476 346,109 Due from Officers & Employees 5,000 13,617 22,552 16,763 Loan Receivable from Shareholder (b) 7,500 7,500 7,500 7,500 Other Current Assets 682 13,332 700 2,678 Total Current Assets 238,920 338,444 334,873 369,552 Property and Equipment: Rental Equipment 768,481 928,391 1,077,484 1,251,080 Leasehold Improvements & Other Equipment 102,272 133,850 208,827 278,508 870,753 1,062,241 1,286,311 1,529,588 Less Accumulated Depreciation 414,988 551,214 679,734 851,053 Net Property and Equipment 455,765 511,027 606,577 678,535 Other Assets: Loan Receivable from Shareholder (b) 30.000 20,000 10,000 10,000 Due from Affiliate (c) 110,000 110,000 158,000 65,950 140,000 130,000 168,000 75,950 Total Assets $ 834.685 S 979,471 $ 1,109,450 $ 1,124,037 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Borrowings under Bank Line of Credit $ 75,000 $ 98,270 $ 140,000 Current installments of Term Note (d) 32,539 53,388 70,651 75,268 Due to Officer 17,000 32,816 32,816 Accounts Payable and Accounts 63,465 69,233 88,296 103,155 Total Current Liabilities 188,004 155,437 290,033 318,423 Term Notes Payable, Less Current install. (d) 226,814 337,109 317,266 243,311 Total Liabilities 414,818 492,546 607,299 561,734 Shareholders' Equity: Common Stock, $1 Par Value 2,000 2,000 2,000 2,000 Additional Pald-In Capital 74,000 74,000 74,000 74,000 Retained Earnings 343,867 410,925 426,151 486,303 Total Shareholders' Equity 419,867 486,925 502,151 562,303 Total Liabilities and Shareholders' Equity $ 834,685 $ 979,471 $ 1,109,450 $ 1.124.037 (a) Accounts Receivable are shown net of allowance for doubtful accounts of $5,000. (b) A loan was made to a shareholder to purchase shares. $17,500 was outstanding as of 12/31/97 (c) At Dec. 31, 1996, the outstanding balance of the bank term loan was $383,484 of which $69,893 was due in one year Exhibit 7 Be Our Guest, Inc. 1997 Quarterly Balance Sheets March 31 June 30 Sept. 30 Dec. 31 ASSETS Current Assets: Cash (Overdraft) Accounts Receivable Due from Officers & Employees Loan Receivable from Shareholder Other Current Assets Total Current Assets Net Property and Equipment Other Assets: Loan Receivable from Shareholder Due from Affiliate $ 5,338 S 144,926 31,028 7,500 700 189,492 626,847 12,882 $ 401,432 43,186 7,500 1,630 466,630 685,616 39,239 $ 318,698 40,072 7,500 2,828 408,337 751,304 (3,498) 346,109 16,763 7,500 2,678 369,552 678,535 10,000 10,000 10,000 10,000 61,527 61,527 61,527 65,950 71,527 71,527 71,527 75,950 S 887,867 S 1,223,774 $ 1,231,168 $ 1,124,037 Total Assets LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Borrowings under Bank Line of Credit Current installments of Term Note Accounts Payable and Accruals Total Current Liabilities Term Notes Payable, Less Current Install Other Term Notes Total Liabilities Shareholders' Equity Common Stock, $1 Par Value Additional Paid-in Capital Retained Earnings Total Shareholders' Equity Total Liabilities and Shareholders' Equity Average Debt $ 68,270 S 71,201 74,649 214,120 296,281 4,432 514,833 97,270 $ 71,826 145,097 314,194 278,567 4,432 597,193 87.270 $ 140,000 72,455 75,268 167,769 103,155 327,494 318,423 260,440 243,311 4,432 592,367 561,734 2,000 2,000 2,000 2,000 74,000 74,000 74,000 74,000 297,034 550,581 562,801 486,303 373,034 626,581 638,801 562,303 S 887,867 $ 1,223,774 $ 1.231,168 $ 1,124,037 (298,220) (319,409) (289,035) (306,954)