Please answer the following Questions: 1.What is the quick ratio for a 161 room
ID: 2455681 • Letter: P
Question
Please answer the following Questions:
1.What is the quick ratio for a 161 room hotel that had total current assets of $304,817, current liabilities of $407,418 and the following current asset composition: cash $218,409 accounts receivable $18,922, inventory $6,661 and prepaid expenses and other $60,825?
2. What is the net return on assets for a hotel that generated total revenues of $4,076,000 in 2006 based on total assets of $7,694,748? The property's net income was $298,300 with a GOP of $1,892,900. In 2005, the hotel achieved total revenue of $3,864,000 and net income was $309,120 with a GOP of $1,159,200 based on total assets of $6,925,273
3. What is the solvency ratio for a hotel that had current assets of $207,000, current liabilities of $185,000 total assets of $1050,000, owners equity of $400,000 and total liabilities and owners equity of $1050,000?
4. What is the number of times interest earned for a hotel that had a gross operating profit of $21,150 per avaliable room? The hotel had the following fixed charges on a per avaliable romm basis: management fees $1803, rent, $2404, property taxes $1482, insurance $256, interest $4621, depreciation and amortization $3980, and other fixed charges $726.
5. What is the relative growth differencce in rooms revenue for a 205 room hotel that experinced an occupancy in 2006 of 80.4% and 82.7% in 2005? The hotel achieved an average room rate in 2006 of $198.36 and $179.55 in 2005.
Explanation / Answer
Amount($) Cash 218,409.00 Accounts receivable 18,922.00 Inventory 6,661.00 Prepaid expenses 60,825.00 1 Total current Assets 304,817.00 Total current Liabilities 407,418.00 Quick Ratio=Current Assets-Advances-Prepayments-Inventory/Current Liabilities Quick Ratio= 237,331.00 407,418.00 Quick Ratio= 0.5825 2 Year 2006 2005 Total Revenue 4,076,000.00 3,864,000.00 Total Assets 7,694,748.00 6,925,273.00 Net Income 298,300.00 309,120.00 GOP 1,892,900.00 1,159,200.00 Return on Assets Ratio= Net Income/Average Assets Average Assets = 7,843,898.00 Return on Assets Ratio= 0.03803 3 Amount($) Current assets 207,000.00 Current Liabilities 185,000.00 Total Assets 1,050,000.00 Owner's equity 400,000.00 Total liabilities and owner's equity 1,050,000.00 Solvency Ratio= Total Liabilities/Net worth or Owner's equity Solvency Ratio= 2.625 Amount($) 4 Gross operating profit 21,150.00 Fixed Charge Management Fees 1,803.00 Rent 2,404.00 Property tax 1,482.00 Insurance 256.00 Interest 4,621.00 Depreciation 3,980.00 Other fixed Charge 726.00 Times Interest Earned Ratio EBIT/Interest Expense EBIT 10,499.00 Times Interest Earned Ratio 2.272 5 2006 2005 Room Rate 198.36 179.55 occupancy 80.40% 82.70% Total No.of rooms 205 205 Total Revenue 32693.70 30440.01 Growth in room revenue 2253.69