Q1. For Dine Equity and Nathan’s Famous listed below, complete the common-size statements by dividing each item on the balance sheet by the amount of total assets. Record the resulting common-size percentage in the shaded area provided.
(Percentages for CA + PPE, net + Goodwill + Other = 100% and CL + LTD + Other NCL + CS + RE + other = 100 %.)
Q2. The debt ratio (Total liabilities / Total assets) for Darden Restaurants is _________ or _________ (decimal form).
Q3. Which company finances assets primarily with amounts borrowed long term? (_________ / DRI / NATH)
Q4 Which company finances assets primarily with amounts invested by shareholders?(DIN / DRI / _________)
Q5. Which company finances assets primarily with past profits? (DIN / _________ / NATH)
Q6. Review the balance sheet information presented above for the three restaurant chains and comment on at least two items of significance that the common-size statements help to reveal.
Q7. These companies were easier to compare (before / _________) you prepared the common-size statements. Why?