HOS 372 Test #1 6. Summer 2015 Page 2 Prepare a common-size


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I am having a test review so I need the answer to study and the real test is on Monday but chapter 7 temple due tomorrow Saturday and also assignment 7 I need the solution on temple 7 but I need how to get the answer and the solution on the test review IMG_0001.pdf HOS 372 Test #1 6. Summer 2015 Page 2 Prepare a common-size (vertical) analysis for Dulce’s Sweet Shoppe for two years Be sure to fill-in all of the missing amounts: 11 points 2013 Revenue Cost of Food Gross Profit Labor Costs Rent, Operating Other Expense Total Expense 20L4 o/o $1,518 $ o/o 1,836 466 561 385 454 289 332 201 L75 Operating Profit 7. Using the various percentages computed above, comment on the results. Be specific as to what may have contributed to the changes in the financial situation of the restaurant. 4 points 8. Katie’s Capstone Coffee Shop reported the following data for 2011 and 2Ot2. Perform a horizontal analysis. 10 points 2013 Revenue Cost of Sales Gross Profit Store Expense Other Expense Total Expense $ 2(JL4 10,383 A Ao/o $7t,775 4,645 5,325 3,745 4,425 L-692 1JB5 Operating Profit 9. Comment on these results: Consider the changes in all costs and expenses compared to the change in revenues. Why did profit change? 4 points 10. Victoria is considering the use of Debt to supply a portion of the capital in her new business, Mullaly MICE Marketing. This would add Leverage to the capital structure. a. Explain the possible advantage of leverage: 4 points 11. 6 points b. Discuss the potential risk associated with leverage: Sylvie’s Sawbones Steakhouse has the following data. Total Assets are $10,000,000 and Total Liabilities are $8,000,000. Show your calculations for the following: a. b. c. Owner’s Equity: Liabilities to Equity ratio: Is this operation highly leveraged? Explain your reasoning. Read more

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