176 Chapter 8 Comparison Reports and Financial Analysis Practice Exercises Calculate the following ratios from the information sheet and balance sheet that are attached. Flagstaff Hotel Balance Sheet June 30, 2008 1000) $75 20 5205 ASSETS Current Cash Accounts Receivable Inventories Total Current Assets Long Term Property Plant Equipment Less Depreciation Total Long Term Assets Total Assets $125 200 LIABILITIES Current Accounts Payable Wages Payable Taxes Payable Total Current Liabilities Long Term Bank Loans Line of Credit Lease Obligations Other Long-Term Obligations Total Long-Term Liabilities Total Liabilities OWNER EQUITY Paid In Capital Capital Stock Retained Earnings Total Owner Equity Total Liabilities and Owner Equity 5730 $380 5730 Total Assets $730 Flagstaff Hotel-600 Rooms Operating Information June 30, 2008 1. Total rooms 18,000 = 600 x 30 days in June 2. Total out of order and complimentary rooms=75 3. Total rooms sold in June 15,300 4. Total guests = 18,360 5. Total room revenue = $1,185,000 6. Total restaurant customers - 11,000 7. Total restaurant revenue $125,000 8. Total food cost = $35,500 9. Total hotel profit (net profit) $550,000 10. Number common shares outstanding - 1,000,000 11. Stock price $12.00 12. Total hotel revenue - $1,575,000 D13. Current Ratio = 1.21 1.45 1.64 1.87 D 14. Accounts Receivable Turnover = 22.4 28.6 34.8 39.4