Business Finance - Accounting Ratios Assignment
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FlagstaffHotelBalanceSheet.docxFlagstaff Hotel Balance Sheet
ASSETS LIABILITIES
Current Current
Cash 75 Accounts Payable 60
Accounts Receivable 40 Wages Payable 40
Inventories 90 Taxes Payable 25
Total Current Assets 205 Total Current Liabilities 125
Long Term Long Term
Property 125 Bank Loans 150
Plant 200 Line of Credit 50
Equipment 150 Lease Obligations 25
Less Depreciation 50 Other Long-Term Obligations 0
Total Long Term Assests 525 Total Long-Term Liabilities 225
Total Assets 730 Total Liabilities 350
OWNER EQUITY
Paid in Capital 200
Capital Stock 100
Retained Earnings 0
Total Owner Equity 380
Total Assets 730 Total Liabilities & Owner Equity 730
Flagstaff Hotel - 600 Rooms
Operating Information
June, 30 2018
Total rooms 18,000 = 600 x 30 days in June
Total out of order and complimentary rooms = 75
Total rooms sold in June = 15,300
Total guests = 18,360
Total room revenue = $1,185,000
Total restaurant customers = 11,000
Total restaurant revenue = $125,000
Total food cost = $35,500
Total Hotel profit (net profit) = $550,000
Number of commons shares outstanding = 1,000,000
Stock price = $12.00
Total Hotel revenue = $1,575,000
Activity Ratios
_____Total Occupancy %
_____Available Occupancy %
_____Average guests per room
Operating Ratios
_____Average room rate
_____Average food check
_____RevPAR
_____Food Cost %
Profitability Ratios
_____Profit Margin %
_____Return on assets (use the balance for June 30)
_____Return on Owner Equity (use the balance for June 30)
_____Earnings per share
_____Price/Earnings ratio (PE ratio)
Liquidity Ratios
_____Current ratio
_____Accounts receivable turnover
Solvency Ratios
_____Solvency ratio
_____Debt equity ratio
