Please answer the following questions: 1. What is the total liabilities of total
ID: 2454946 • Letter: P
Question
Please answer the following questions:
1. What is the total liabilities of total assets ratio if a hotel had currents assets of $73,370 and total assets of $839,400? The property's current liabilities totaled $62,700 and its equity totaled $263,900
2. What is the price earning ratio for a chain with 9 full service properties? The chains total revenue for 2008 was $79,238,000; the departmental expenses were 33,343,000; undistributed operating expenses were $17,345,000; rent, property taxes and insurance totaled $3,040,000; interest & depreciaition expenses were $4,823,000; income tax was $6206,000. The hotels had common shares outstanding at the beginning of the year 9,000,000 shares and at the end of the year 12,000,000 shares. The hotels average income market price over the year was $23.12 per share.
3. What is a hotels current ratio fr Y2008, if the propert's total assets in Y2008 were $20,375,419.4 of which 3.1% were current? The property's total liabilities in Y2008 were $17,528,332.2 of which 2.5% were current. In Y2007 the hotels current assets were $588,971.6 and current liabilities were $214,966.2.
4. Whaty is the fixed asset turnover of Y2008 for a 731 room downtown hotel that recorded total revenues of $34,076,753 om Y2008 and $35,650,873 in Y2007? The property on its balance sheet had fixed assets in Y2008 of $26,800,000 and $22,750,000 in Y2007
Explanation / Answer
Solution:
(A). Total Assets and Total Liabilities Ratio:
Current Ratio = 73,370 + 8,39,400 / 62,700 + 2,63,900
= 9,12,770 / 3,26,600
= 2.79%
(B). Price Earning Ratio:
Price Earning Ratio = $ 23.12 / $ 1.206
= $ 19.17
(B)1. Net Income Caluculation:
Total Revenue 79,238,000
Less: Expencess
Dept Expencess 33,343,000
Operating Expences 17,345,000
Rent & Taxes 30,40,000
Depreciation Exp 48,23,000
Income Tax 62,06,000
Total Expencess = 64,757,000
Net Income = 14,481,000
(B)2. Earning Per Share Ratio:
Earning Per Share Ratio = 14,481,000 / 12,000,000
= $ 1.206
(C). Current Ratio:
Current Ratio = 12,20,609.6 / 6,53,174.5
= 0.186
2008 Year Assets 20,375,419.4 * 3.1 / 100 = 6,31,638.0
2007 Year Assets = 5,88,971.6
= 12,20,609.6
2008 Year Laibilities 17,528,332.2 * 2.5 / 100 = 4,38,208.3
2007 Year Liabilities = 214,966.2
= 6,53,174.5
(D). Fixed Assets Turnover Ratio:
Fixed Assets Ratio = 69,727,626 / 24,775,000
= 2.81 %
Total Revenue 34,076,753 + 35,650,873 = 69,727,626
Total Fixed Assets 26,800,000 + 22,750,000 = 49,550,000
Average Fixed Assets = Total Fixed Assets / 2
= 19,550,000 / 2
= 24,775,000
Current Ratio = Total Assets / Total Liabilities