Question

Fall 2019 (20 points) Ratio Analysis You are interested in investing in a regional hotel company and have investigated the financial statements of four potential investments. Use the information in the table below to answer the questions, Hotel N Hotel J Hotel Hotel W Information from the income statement Total revenue* $10,099.000 Total expenses 9,503,000 $3,816,000 S428,806 354,461 3,618,000 $1,277,550 1,822,748 Information from the balance sheet Current assets 1,946,000 1,020,000 68,629 526,549 Total assets 8,668,000 8,183,000 262,388 3,783,127 Current liabilities 2,356,000 895,000 101,091 693,809 Total liabilities 4,587,000 5,944,000 456,441 3,089,318 Note: total revenue - net sales; the interest expenses and income taxes are included in the total expenses. 1. (12) Calculate the following accounts and financial ratios. Write the final values in the table below, show your calculation in the blank area on the next page for partial credits only. Hotel N Hotel J Hotel C Hotel W .Net income after tax net profit or net loss) . Return on sales Owners' equity Return on equity Current ratio Debt-to-equity ratio 6/7

Answer 1

Ansuer Total Expenses Total Yeuenue- a NCt 'iniome aftcu tax Hote Hotel C HOlel Holel C$545,198) $743u5 4192,000 Net nome affer Tāx $594000 Cmet proft loss) Net Income after tax Retunn on sale Tota Reenue Hotel Lo Hoter N Hotel J (34 5.1१|. 5.१०'- Retunn on sales F4345 xlo 28,8c6 $100 99 000 0o0418's Owners equity Total assets - Totau liablıtieg Htotel co Hotes N Hotel J 4194,053) $693,809 Ownes equuhy 2,2-29000 $408l000 Net income affer tax DReton on equihy = share holde euihy Hotel c Hotel N Hotel J Retuonn on equsitg t4.60/ .h8.8

Current lia bilihes Current ra tio Current AYsers Hotel N Ho tel c Mo tel J Hotel N ((67260) 125000 Curent Rato 410,000) Totau liabilrhies Debt to equihy ratio Share holdenequty (o9 Cunen equi Hotel IA Hotel Ho tel J Hotel C a.65 12 Debt to eguihy ato