Practice Exercises Calculate the following ratios from the information sheet and balance sheet that are attached. Flagstaff Hotel Balance Sheet June 30, 2008 (000) ASSETS Current Cash $ 75 Accounts Receivable 40 Inventories 90 Total Current Assets $205 Long Term Property $125 Plant 200 Equipment 150 Less Depreciation 50 Total Long-Term Assets $525 Total Assets $730 LIABILITIES Current Accounts Payable $ 60 Wages Payable 40 Taxes Payable 25 Total Current Liabilities $125 Long Term Bank Loans $150 Line of Credit 50 Lease Obligations 25 Other Long-Term Obligations 0 Total Long-Term Liabilities $225 Total Liabilities $350 OWNER EQUITY Paid In Capital $200 Capital Stock 100 Retained Earnings 80 Total Owner Equity $380 Total Liabilities and Owner Equity $730 Total Assets $730 Flagstaff Hotel—600 Rooms Operating Information June 30, 2008 1. Total rooms 18,000 = 600 × 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
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Total Occupancy % = (Total rooms sold in June / Total rooms) x 100 = (15,300 / 18,000) x 100 = 85% Show more…
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