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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 000 $75 40 90 $205 $ 60 40 28 $125 ASSETS Current Cash Accounts Receivable Inventories Total Current Assets Long Temn Property Plant Equipment Less Depreciation Total Long-Term Assets Total Assets $125 200 150 50 $525 5730 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 $150 50 25 g $225 $350 $200 100 $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 - 18,60 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 = $1,875,000 Use the above information to solve the following Activity Ratios, Operating Ratios, Profitability Ratios, Liquidity Ratios, and Solvency Ratios. Question 3 0.63 pts Average Guests per Room O 0.89 O 1.2 O 1.9 O 22 Question 5 0.63 pts Average Food Check $7.66 O $8.39 O $10.34 O $1136 Question 6 0.63 pts RevPAR- O $65.83 O $72.88 $81.99 O $83.34 section 7 063 nts Question 8 0.63 pts Profit Margin % O 30.5% O 34.9% O 41.5% 0 43.7% D question 9 0.62 pts Return on Assets (use the balance for June 30) = O 62.4% O 66.5% O 71.4% O 75.3% Question 10 0.62 pts Return on Owner Equity (use the balance for June 30) - O 1.1 O 12 O 1.3 O 14

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