4. Rachel\'s regional manager (from Question 3) has asked Rachel to calculate a

Question

4. Rachel's regional manager (from Question 3) has asked Rachel to calculate a horizontal analysis of her balance sheet. Help Rachel calculate her horizontal analysis. RACHEL'S RESTAURANT Balance Sheet December 31, 20XxX Last Year | This Year | $ Change | % Change Assets Current Assets Cash Marketable Securities Net Receivables Inventories 57,317 104,615 130,769 80,000 48,36334,545 63,049 64,000 Total Current Assets Investments 323,488 248,837 Property and Equipment Land Building Furnishings and Equipment Less Accumulated Depreciation 206,053 206,053 418,665 418,665 267,223 205,556 142,710 135429 Net Property and Equipment Other Assets 2,6515,814 Total Assets

Explanation / Answer

Last year This Year $ Change [decrease in ( ) ] % Change a b =b-a =(b-a)/a*100 Assets Current Assets: Cash           63,049      57,317      (5,732) -9.09% Marketable Securities         104,615     130,769     26,154 25.00% Net Recievables           64,000      80,000     16,000 25.00% Inventories           48,363      34,545    (13,818) -28.57% Total Current Assets         280,027     302,631     22,604 8.07% Investments         323,488     248,837    (74,651) -23.08% Property and Equipment Land         206,053     206,053           -   0.00% Building         418,665     418,665           -   0.00% Furnishings and Equipment         267,223     205,556    (61,667) -23.08% Less Accumulated Depreciation         142,710     135,429      (7,281) -5.10% Net Property and Equipment         749,231     694,845    (54,386) -7.26% Other Assets           12,651      15,814       3,163 25.00% Total Assets      1,365,397 1,262,127 (103,270) -7.56% Liabilities and Owner's Equity Current Liabilities Accounts Payable         253,354     142,439 (110,915) -43.78% Notes Payable           38,286      31,905      (6,381) -16.67% Other Current Liabilities         192,279     147,907    (44,372) -23.08% Total Current Liabilities         483,919     322,251 (161,668) -33.41% Long Term Liabilities Long Term Debt         102,560     218,272 115,712 112.82% Total Liabilities Owner's Equity Common Stock         102,631      78,947    (23,684) -23.08% Paid in Capital         421,621     324,324    (97,297) -23.08% Retained Earnings         254,666     318,333     63,667 25.00% Total Owner's Equity         778,918     721,604    (57,314) -7.36%           -   Total Liabilities and Owner's Equity      1,365,397 1,262,127 (103,270) -7.56% a. No, There is increase by 16000 or 25 % on year on year basis b. Yes, Inventories have decreased by 13,818 or 28.57% on year on year basis. c. Yes, Accounts Payable have decreased by 110,915 or 43.78% year on year basis d. Yes, Total current liabilities have decreased by 161,668 or 33.41% on year on year basis. e. Rachael missed out on only point a. Barring that she has done good job to achieve the objectives

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