A restaurant has the following statistical information calculated from its financial statements for the past three years:

Â	Year 0003	Year 0004	Year 0005
Current ratio	1.241	1.181	1.051
Credit card turnover ratio	91 times	93 times	98 times
Accounts receivable turnover	14 times	24 times	31 times
Food inventory turnover ratio	38 times	44 times	48 times
Total liabilities to total equity	1.941	2.521	2.951
Return on stockholders’ equity	7.7%	9.6%	9.9%
Annual revenue	$880,000	$882,500	$872,300

Using this information, answer each of the following questions and explain your answer. A simple yes, no, more, less, or maybe won’t do! A comment is required in each case.

a. Are current assets in relation to current liabilities increasing or decreasing?

b. Is the restaurant becoming more or less efficient in the collection of its credit card receivables?

c. Is the restaurant becoming more or less efficient in the collection of its accounts receivable?

d. Over the three-year period, has more or less money been tied up in food inventory?

e. With the stockholders’ viewpoint in mind, is profitability improving or not improving?

f. If the restaurant needed to borrow capital through long-term debt, would it be easier to find a lender now than three years ago?

g. Has the restaurant been using leverage to the advantage of the stockholders over the three-year period?

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