Overview
question 1 Chapter 3; Question 1 (page 106 of your text) Rubric: Table complete and correct worth 3 points, each question "a" through "g" worth 1 point each Complete the table on the worksheet using vertical analysis, then answer the subsequent questions about Nicole's P&L a. When comparing this year to last year, was Nicole's marketing expense in dollars higher or lower? b. Was Nicole's marketing expense % higher or lower this year? c. Do you think that her marketing expense this year positively or negatively contributed to her revenues? Why? d. When comparing this year to last year, was Nicole's salaries and wages expense in dollars higher or lower? e. Was Nicole's salaries and wages expense % higher or lower this year? f. Do you think that her salaries and wages expense this year positively or negatively contributed to her net income? Why? g. The owner promised Nicole that he would give her a raise if she increased profit margin by at least 2%. Should Nicole receive a raise? Why or why not? Question 2 Chapter 4; Question 4 (page 141 of your text) Rubric: Table complete and correct worth 5 points, each question "a" through "e" worth 1 point each Complete the table on the worksheet using vertical analysis, then answer the subsequent questions about Rachel's Restaurant's Balance Sheet December 31, 20XX a. Rachel's regional manager told her to try and decrease her accounts receivable this year. Did she do this? b. Rachel's regional manager told her to try and reduce her inventories this year to be more in line with the chain's average inventories. Did she do this? c. Rachel's regional manager told her to pay more of her accounts payable this year. Did she do this? d. Rachel's regional manager told her to pay off more of her total current liabilities this year. Did she do this? e. Based on her ability to achieve the goals outlined in a. through d. above, do you think Rachel did a good job overall?