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3. Aldan Norton owns Aidan's Lodge in a rural Midwestern town. His accountant is out with the flu, and Aidan has to develop his balance sheet without his accountant's help Balance Sheet Accounts Investments Other Current Liabilities Building Accounts Payable Long-Term Debt Cash Furnishings and Equipment Notes Payable Marketable Securities $1,275,000 1,590,000 3,250,000 1,460,000 1,800,000 587,500 1,850,000 335,000 840,000 Paid in Capital Accumulated Depreciation Inventories Common Stock Retained Earnings Land Net Receivables Other Assets $3,000,000 1,185,000 380,000 750,000 2,865,000 1,957,500 2,675,000 170,000 Using the balance sheet accounts above, complete Adrian's balance sheet below. (10 points) Aidan's Lodge Balance Sheet December 31 This Year ASSETS LIABILITIES AND OWNERS' EQUITY Current Liabilities Current Assets Total Current Liabilities Total Current Assets Long-Term Liabilities Investments Total Liabilities Property and Equipment Owners' Equity Less: Accumulated Depreciation Net Property and Equipment Total Owners' Equity Other Assets TOTAL ASSETS TOTAL LIABILITIES AND OWNERS' EQUITY 4. Rachel owns a franchise restaurant, which is part 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, This Year $ % ASSETS Current Assets Cash 57,317 Marketable Securities 130,769 Net Receivables 80,000 Inventories 34,545 Total Current Assets Investments 248,837 Property and Equipment Land 206,053 418,665 Building Furnishings and Equipment 205,556 Less Accumulated Depreciation 135,429 Total Property and Equipment-Net Other Assets 15,814 Total Assets LIABILITIES AND OWNERS' EQUITY Current Liabilities Accounts Payable 142,439 Notes Payable 31,905 Other Current Labilities 147,907 Total Current Ulabilities Long-Term Liabilities Long-Term Debt 218,272 Total abilities Owners' Equity Common Stock 78,947 Paid in Capital 324,324 318,333 Retained Earnings Total Owners' Equity TOTAL LIABILITIES AND OWNERS' EQUITY (1) Fill in the gray blanks in the balance sheet above (10 points) Rachel has been given by her regional franchise services director manager some balance sheet percentage averages for chain operated units. Select percentages of the chain-operated units are given as follows: Select Chain Percentages (Vertical Analysis) Cash 6.7% Inventories 1.3% Accounts Payable 10.5% Notes Payable 1.1% (2) Compare Rachel's cash % with the chain units' %. Is it higher or lower? What does this mean? (2 points) (3) Compare Rachel's inventories % with the chain units' %. Is it higher or lower? What does this mean? (2 points) (4) Compare Rachel's accounts payable % with the chain unit's %. Is it higher or lower? What does this mean? (2 points) (5) Compare Rachel's notes payable with the chain units X. Is it higher or lower? What does this mean? (2 points)
