Explore BrainMass
Share

Explore BrainMass

    Bien Taco Restaurants: Comparative Financial Statements

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    The comparative financial statements of Bien Taco Restaurants for 2006, 2005 and 2004 include the following selected data:

    *Please see attachment

    REQUIREMENTS:
    1. Compute these ratios for 2006 and 2005:
    a. Quick ratio
    b. Day's sales in receivable

    2. Write a memo explaining to the company owner which ratios improved from 2005 to 2006, which ratios deteriorated, and which item in the financial statements changed and caused changes in some ratios? Discuss whether this change conveys a favorable or an unfavorable impression about the company.

    © BrainMass Inc. brainmass.com October 10, 2019, 6:51 am ad1c9bdddf
    https://brainmass.com/business/financial-statements/bien-taco-restaurants-comparative-financial-statements-558875

    Attachments

    Solution Summary

    Your tutorial is attached in excel and indicates how these ratios changed and whether this is a favorable development.

    $2.19