Interpreting balance sheet changes Exhibit 3.6 presents a common-size balance sheet for Texas Steakhouse, a restaurant chain, for the fiscal years ended December 31, 2007, and December 31, 2008.
a. Identify the ways in which the structure of Texas Steakhouse€™s assets and the structure of its financing correspond to what one would expect of a restaurant chain. What aspects of the structure of its assets and the structure of its financing are not what one would expect?
b. Identify the major changes in the nature and mix of assets and the nature and mix of financing between 2007 and 2008, and suggest possible reasons for the changes.
c. An increase in the common-size balance sheet percentage between two year-ends for particular balance sheet item for example, cash does not necessarily mean that its dollar amount increased.Explain.

Texas Steakhouse EXHIBIT 3.6 Common-Size Balance Sheet (Problem 32) December 31 2008 2007 ASSETS Cash 12.3% 7.6% Accounts Receivable 0.9 0.9 Inventories Other Current Assets 2,6 3.3 1.5 1.7 Total Current Assets 13.5% 17,3% Property. Plant, and Equipment 68.1 67.9 Other Assets 18.4 14.8 Total Assets 100.0% 100.0% LIABILITIES AND SHAREHOLDERS EQUITY Current Liabilities Accounts Payable 4,0% 4.0% Notes Payable 1.3 1.1 Othar Current Liabilities 12.4 10.8 Total Current Liabilities 15.9% 17.7% Noncurrent Liabilities Bonds Payable ... 1.1% 1.2% Other Noncurrent Liabilities 3.1 3.9 Total Noncurrent Liabilities 4.2% 5.1% Total Liabilities.. 21.9% 21.0% Shareholders' Equity Common Stock 11.1% 15.1% Retained Earnings Total Shareholders Equity 67.0 63.9 18.1% 79.0% Total Liabilities and Shareholders Equity 100.0% 100.0%