Purpose: Prepare common-size statements and understand the information provided. The Common-Size Balance Sheet compares all amounts to total assets of that same year. The analysis measures each item as a percentage of total assets. Q1 For DineEquity and Chipotle Mexican Grill 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. (Hint: Percentages for CA + PPE, net + Goodwill + Other 100% and CL+ LTD + Other NCL + CS + RE + Other = 100 %.) Darden Restaurants Nathan's Famous (NATH) 2010 DineEquity (DIN) (DRI) ($ in millions) $ CS% $ CS% $ CS% Current assets 351.0 % 678.5 12.9% 43.82 % PPE, net 612.2 % 3,403.7 64.9% 5.47 % Goodwill+ intangibles 1533.4 % 994.9 19.0% 1.44 % Other assets 360.0 % 170.3 3.2% 2.63 % TOTAL ASSETS 2,856.6 % 5,247.4 100.0% 53.37 % Current liabilities: 265.1 % 1,254.6 23.9% 7.16 % Long-term debt 2,013.0 % 1,466.3 27.9% 0.0 % Other NC liabilities 494.7 % 632.5 12.1% 1.91 % Contributed capital 234.5 % 2,297.9 43.8% 52.1 % Retained earnings 124.3 % 2,621.9 50.0% 16.8 % Other SE (275.0) % (3,025.8) (57.7)% (24.6) % TOTAL L and SE 2,856.6 %* 5,247.4 100.0% 53.37 % *Note: The percentages may not sum to 100% due to rounding error. Refer to the information above to answer the following questions. Q2 The debt ratio (Total liabilities/Total assets) for Darden Restaurants is (decimal form). % or Q3 Q4 Q5 Q6 Which company finances assets primarily with amounts borrowed long term? (DIN/DRINATH) Which company finances assets primarily with amounts invested by shareholders? (DIN/DRI/NATH) Which company finances assets primarily with past profits? (DIN/DRI/NATH) 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/after) you prepared the common-size statements. Why?