Homework Help is Here – Start Your Trial Now!
Business
Finance
A restaurant has the following information statistical information calculated from its tinancial statements for the past three years. Year 1 Year 2 Year 3 Curent Ratio 1.01:1 125:1 1.40:1 Accornts Receivable Tunover 18 times 24 times 31 titmes Food inventory Tumover Ratio 37 times 28 times 22 times Total Liabilities to Total Equity 2.75:1 24:1 1.95:1 Return on Stockholders' Equity 9.72% 9.51% 8.74% Annual Revenue P875,400 P881,900 P879,300 Using this information, answer cach of the following questions and explain your answer. A simple yes, no, more, less, or maybe wan't do! 1.) Are current assets in relation to curent liabilities increasing or decreasing? 2.) Is the restaurant becoming more or less eflicient in the ocollection of its accouunts receivable? 3.) Over lhe thuee year period, has noe or less money beern lied up in food inverlory? 4.) With the stockholders' viewpoint in mind, is the profitability improving or not improving? 5.) If the restaurant needed to borrow capital through long-term debt, would it be easier to find a lender tww than tduee yeaas ago?

A restaurant has the following information statistical information calculated from its tinancial statements for the past three years. Year 1 Year 2 Year 3 Curent Ratio 1.01:1 125:1 1.40:1 Accornts Receivable Tunover 18 times 24 times 31 titmes Food inventory Tumover Ratio 37 times 28 times 22 times Total Liabilities to Total Equity 2.75:1 24:1 1.95:1 Return on Stockholders' Equity 9.72% 9.51% 8.74% Annual Revenue P875,400 P881,900 P879,300 Using this information, answer cach of the following questions and explain your answer. A simple yes, no, more, less, or maybe wan't do! 1.) Are current assets in relation to curent liabilities increasing or decreasing? 2.) Is the restaurant becoming more or less eflicient in the ocollection of its accouunts receivable? 3.) Over lhe thuee year period, has noe or less money beern lied up in food inverlory? 4.) With the stockholders' viewpoint in mind, is the profitability improving or not improving? 5.) If the restaurant needed to borrow capital through long-term debt, would it be easier to find a lender tww than tduee yeaas ago?

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 56P: The following selected information is taken from the financial statements of Arnn Company for its...
See similar textbooks
icon
Related questions
Question
A restaurant has the following information statistical information calculated from its tinancial statements for the past three years. Year 1 Year 2 Year 3 Curent Ratio 1.01:1 125:1 1.40:1 Accorunts Receivable Tunover 18 timves 24 times 31 times Food inventory Tumover Ratio 37 times 28 times 22 times Total Liabilities to Total Equity 2.75:1 24:1 1.95:1 Return on Stockholders' Equity 9.72% 9.51% 8.74% Annual Revenue P875,400 P881,900 P879,300 Using this information, answer cach of the following questions and explain your answer. A simple yes, no, more, less, or maybe won't do! 1.) Are current assets in relation to current liabilities increasing or decreasing? 2.) Is the restaurant becoming more or less elicient in dhe collection of its accounts receivable? 3.) Over the thuee year period, has more or less money beenn tied up in food inverlory? 4.) With the stockholders' viewpoint in mind, is the profitability improving or not improving? 5.) If the restaurant needed to borrow capital through long-term debt, would it be easier to find a lender Low than tduee years ago?
Transcribed Image Text:A restaurant has the following information statistical information calculated from its tinancial statements for the past three years. Year 1 Year 2 Year 3 Curent Ratio 1.01:1 125:1 1.40:1 Accorunts Receivable Tunover 18 timves 24 times 31 times Food inventory Tumover Ratio 37 times 28 times 22 times Total Liabilities to Total Equity 2.75:1 24:1 1.95:1 Return on Stockholders' Equity 9.72% 9.51% 8.74% Annual Revenue P875,400 P881,900 P879,300 Using this information, answer cach of the following questions and explain your answer. A simple yes, no, more, less, or maybe won't do! 1.) Are current assets in relation to current liabilities increasing or decreasing? 2.) Is the restaurant becoming more or less elicient in dhe collection of its accounts receivable? 3.) Over the thuee year period, has more or less money beenn tied up in food inverlory? 4.) With the stockholders' viewpoint in mind, is the profitability improving or not improving? 5.) If the restaurant needed to borrow capital through long-term debt, would it be easier to find a lender Low than tduee years ago?
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Ratio Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
College Accounting, Chapters 1-27 (New in Account…
College Accounting, Chapters 1-27 (New in Account…
Accounting
ISBN:
9781305666160
Author:
James A. Heintz, Robert W. Parry
Publisher:
Cengage Learning
College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Financial And Managerial Accounting
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Financial Accounting
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS