Can you please solve problem 24 Part A. Part.B and Part.C required question with
ID: 2416519 • Letter: C
Question
Can you please solve problem 24 Part A. Part.B and Part.C required question with a brief explanation? Thank you!!
sales are credit sales) Acm unts receivable turnover = 30 times ( Accountsy turnover63525 times receivable turne 9425 times 9.625 times erage inventory turnover = 6.3525 Property and equipment turnover 1 Food inventory turnover 1 times I1. Depreciation eense - 1o percent of book vatue at yeure 12 Long-term 9 Bev t of book value at year-end 9 times accounts payable -term debt 13 Interest rate- 10 percent 14. Tax rate=20 percent s500 15 16. Average food and beverage check 17. Size of motel Average room rate = sa.00 25 rooms Occupancy percentage = 80 percent Undistributed Operating Expenses Beverage cost percentage = 22 percent 18. Number of food and beverage checks = 30800 ses = 335 percent of total revenue 19. 38 40 percent 21. Food cost percentage 22 labor and other cost percentage = 30 percent 23. Food and beverage 24. Rooms labor and other cost percentage = 40 percent of total food and beverage sales 25. Food sales = 62 ½ percent 26, 27, to 1 Debt-equity ratio Return on owners' equity = 1.330667 percent g of the year is the same as at the end ct Assume that the balance sheet at the beginning of the year is Fear Note: For this problem, food and beverage is a single combined de department Problem 24 Part A: The Hudson Hotel, a 100-room limited-service operation, has following data for the months of September and October: tion, has provided you wih th September October Single rooms sold Double rooms sold Room revenue Number of paid guests 1,000 1,600 950 1,610 $221,000 $222,720 Required 1. Compute the paid occupancy for September. 2. What was the monthly ADR for October? 4,520 4,653 2 What was the monthly ADR for October?Explanation / Answer
24. Part B:
Total Cost = Opening Inventory+purchases + Employee meals + Promotional meals+transfer meals-Closing inventory
= $ 12,000+$160,000+$3,000+$2,000+$100 - $ 14,000 = $163,100
Note: Except food Sales, all others are treated as costs as it doesn't involve any profits
1. Cost percentage: Cost / Sales x 100 = 163,100/480,000 x 100 =33.98%
2.Inventory turnover ratio = Cost /average inventory = 163,100/12,000+14,000/2 = 163,100/13,000 = 12.55 times
Part C: Liquidity ratio can be under stood based on company's current rario, this ratio indicates the relationship betwen current assets and current liabilities. To calculate current ratio, the following formula can be applied
Current ratio = current ratio /current liabilities
Desirable current ratio for any company is 2:1; but for the given company is below 2 for all the three years, hence its liquidity position is not upto the marke, so company shoudl improve this ratio by increasing its current assets or decreasing its current liabilities.