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.
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Balance Sheet Information Income Statement |
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Current Assets |
$88,600 |
Food Revenue |
$155,000 |
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Current Liabilities |
$72,000 |
Beverage Revenue |
$20,000 |
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|
Total assets |
$390,010 |
Net income before taxes |
$10,900 |
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Total liabilities |
$217,100 |
Total labor costs |
$52,400 |
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Other Financial and Related Information |
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Beginning Food Inventory |
$12,480 |
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Ending Food Inventory |
$14,100 |
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Cost of sales (food) |
$41,075 |
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Cost of sales (beverages) |
$4,900 |
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Number of guests served (average day) |
452 |
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Number of seats in restaurant |
98 |
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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?
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?
