Week 4 EOC: Quiz 4, Answer 3.

a. Rachel's cash % is 4.5% and the chains % is 6.7%. It is higher.This may Rachel is spending more money on services to help the restaurant and has less Cash assets than the chain. It is important for Rachel to know the different percentages. "there are a variety of important reasons why managers must be able to read and analyze their own balance sheets to determine items such as the current financial balances of cash, accounts receivable etc." (117)

b. Rachel's Inventory percentage is 2.7% and the chain's is 1.3%, which is higher,  this goes along with the fact Rachel may be spending more money on things such on inventory for her restaurant. " In most hospitality industry situations, the value of an inventory item will equal the amount the business paid for it." 124.

c. Rachels accounts Payable percentage is 11.3% and the chains is 10.50%. This is higher. This could mean that Rachel is also buying more inventory (produce and ingredients) than the chain average, so she owes more money to her suppliers. "Accounts 

payable represents the amount of money owed by the business to others (such as suppliers), and as a result is considered to be one of that business’s liability accounts." 37.

d. Rachel's Notes Payable %  is 2.5%, the chain’s % is 1.5%. This is higher. This means that Rachel has more company liabilities than the chain average.