RHM 241 What is the average food inventory

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.

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

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?