Hello , i need assistance with the following below: Refer to the below case study: Critique of

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Hello , i need assistance with the following below:

Refer to the below case study: Critique of a Balance Sheet, and answer the questions that follow. (15)

Critique of a Balance Sheet

Executives of the Grande Hotel meet to review the hotel’s most recent (and much-neglected) balance sheet. Management has focused its attention and effort on improving profitability, because the hotel has been only marginally profitable for the last several years. Indeed, the balance sheet as a financial statement can sometimes be underrated when owners and managers concentrate on sales, expenses, and profits. However, a business’s financial strength and survival depend on its financial condition as represented by the balance sheet.The three important financial statements managers must analyze are the balance sheet, the income statement, and the cash flow statement. The balance sheet presents a company’s resources, how much it owes, and what is left for the owners. The income statement measures the business’s profitability. The cash flow statement shows where cash came from and where it was spent. All three statements play an important role in the management of any business.The Grande has not purchased any new or replacement property and equipment, nor has it sold any property and equipment. The company uses straight-line depreciation for financial reporting.The executives have been given a copy of the most recent comparative balance sheet, which appears in a condensed format below. The general manager declares that the financial condition of the hotel has improved because cash funds have increased by $20,000, or 33.3 percent.

2.1 Comment on the general manager’s claim that the company’s financial strength has improved due to the significant increase in cash this year.

2.2 Furnish possible reasons for the increase in cash.

2.3 Provide possible reasons for the significant changes in any other assets.

2.4 Suggest possible reasons for any significant changes in liabilities.

2.5 Suggest possible reasons for the change in stockholders’ equity.