RHM 241 1 Directions: Answer each problem completely. Chapter 13 Problems Financial Management Problem 1 (16 points): Use the information in the table to answer the questions below. Balance Sheet Information Information Current Assets $88,600 Current $72,000 Liabilities Total assets $390,010 Total liabilities Income Statement $217,100 Food Revenue Beverage Revenue $155,000 $20,000 Net income before taxes Total labor costs $10,900 Other Financial and Related Information Beginning Food Inventory Ending Food Inventory Cost of sales (food) Cost of sales (beverages) Number of guests served (average day) in July Number of seats in restaurant $52,400 $12,480 $14,100 $41,075 $4,900 452 98 1. What is the current ratio? What does it mean? 2. What is the solvency ratio? What does it mean? 3. What is the average food inventory? 4. What is the food inventory turnover rate? How often (number of days) does the food inventory turn over? 1 RHM 241 2 5. What is the restaurant's profit margin? 6. What is the restaurant's food cost percent? 7. What is the restaurant's beverage cost percentage? 8. What is the restaurant's labor cost percentage? 9. What is the average food service check? 10. What is the seat turnover in July? 11. What is an asset? 12. What is a liability? 13.What is owner's equity? 2