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Balance Sheet As at Dec 31 2017 and 2018 Carl’s Jr Restaurants 2017 2018 Current...

Balance Sheet

As at Dec 31 2017 and 2018

Carl’s Jr Restaurants

2017 2018

Current Assets:

Cash $210,000,000 $215,000,000

Accounts Receivables 355,000,000 310,000,000

Inventory 507,000,000 328,000,000

Total Current Assets $1,072,000,000 $853,000,000

Long-Term Assets:

Net Equipment, Furniture, Fixtures $6,085,000,000 $6,527,000,000

Total Assets $7,157,000,000 $7,380,000,000

Current Liabilities:

Accounts Payable $207,000,000 $298,000,000

Notes Payable $1,715,000,000 $1,427,000,000

Total Current Liabilities $1,922,000,000 $1,725,000,000

Long-term Liabilities $1,987,000,000 $2,308,000,000

Owners’ Equity:

Common stock plus Capital Surplus $1,000,000,000 $1,000,000,000

Retained Earnings 2,248,000,000 2,347,000,000

Total Owners’ Equity 3,248,000,000 3,347,000,000

Total Liabilities and Owners’ Equity $7,157,000,000 $7,380,000,000

Income Statement 2018

Carl’s Jr Restaurants

Net Revenues $4,053,000,000

Cost of food and beverage 2,780,000,000

Gross Profit 1,273,000,000

Amortization 100,000,000

Depreciation 450,000,000

EBIT 723,000,000

Interest expense 502,000,000

Taxes 75,000,000

Net Income 146,000,000

a) Prepare a comparative balance sheet statement for the two years.

b) Prepare a common-size income statement.

c) Explain whether liquidity (current ratio and quick ratio) and solvency (debt/equity ratio and debt ratio), have improved for the company.

Expert Solution

jeff jeffy answered 1 year ago

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