Question

ch04 (1) . Read-only Home Insert Draw Formulas Data Review View Read Only- You can't save changes to this file Question 8 3 Nilam Patel's Two Hotel's Balance Sheets Common Size December 31 g0-RoomProperty 90-Room 350-Room Property Property 350-Room Property 6 ASSETS 7 Current Assets 8 Cash $86,00 Cash in House Banks 0 Cash in Demand Deposits Total Cash 10 56,000 13 Short-Term Investments 14 Receivables 15 Accounts receivable 16 Notes receivable 136,25 Other Total Receivables 185 494,200 18 19 Less Allowance for Doubtful Accounts Net Receivables 166 431,900 1.4 21 22 Due from Management Company 50,000 0. + Q1 Q 2 Q3 Q5 Bonus Q8 FINTIE

Answer 1

hi,

due to time constraints, answered 6 subdivisions. Pl fill similarly as per the attached bal sheet.

31-Dec common size 90 room 350 room 90 room 350 room Assets Current Assets Cash Cash in house bank cash in dem deposit 18,500 85,000 103,500 86,000 330,250 416,250 Total Cash Short term investments 56,000 165,000 Receivables: AR Notes rec Other Total receivables 150,000 35,000 750 185,750 327,150 136,250 30,800 494,200 (19,250 (62,300) 431,900 Less: allow for doubtful -10% -13% net receivables 166,500 1.40% 1.10% Due from Mgt company 50,000 0% 0.10% food inventories bevarage inv Gift shop inventories supplies inv Prepaid expense def inc tax-current 15,125 300 6,550 56,000 48,000 69,750 42,550 6,950 13,550 120,100 135,000 0.10% 0% 0% 0.10% 0.50% 0.40% 0.20% 0.10% 0% 0% 0.30% 0.30%

Total current assets Investments Property & equipment land building leasehold furn n equp Total PPE Less: Accum depn 51,975 1,451,050 72,500 274,150 0.60% 0.70% 2,000,0008,450,000 6,500,00018,500,000 2,037,250 5,850,000 1,288,000 3,105,000 11,825,250 35,905,000 575,000 2,575,000 11,250,250 33,330,000 net ppe Other Assets Intangible asset def inc tax-non current Operating equip Restricted cash Total other asset Total Assets 75,000 158,000 111,000 95,000 439,000 11,900,825 35,220,050 66,000 35,100 25,000 126,100 0% 0.60% 0.30% 0.20% 1.10% 100% 0.20% 0.40% 0.30% 0.20% 1.10% 100% Liabilities & Equity Current liab: Notes payable Bank Others 17,500 8,000 25,500 116,250 17,500 133,750 0.10% 0.10% 0.20% 0.30% 0 0.30% Total notes payable

Accounts payable accured exp advance deposit Income tax payable def inc tax-current current matu of LT debt Other Total Current liabilities 125,100 42,500 42,250 78,000 235,000 420,000 1,685,000 58,000 598,500 2,399,600 2,500 45,000 500 15,000 40,000 50,000 5% 5.90% LT Debt net of curr matu: Mortgage notes Obligation under cap lease Total LT Liabilities Owners equity: common stock paid in capital Retained earning Total owners equity 24,383,030 385,000 0.20% 0.90% 18,000 6,868,000 500,000 2,000,000 8,711,500 879,325 2,765,070 4,434,325 13,476,570 TOTAL LIAB & EQUITY 100% 100%

a amt of house bank cash at year end for 90room property 18500 b allowance for doubtful debts for 360room prop Yes. It appears to be excessive, as allow for bad debts is 10% on receivables for 90room property whereas, it is 13% in the case of 360 room property c No beverage stock in 90 room property shows the following probabilities; that it has consumed all stock and hence no closing inventory it is not serving any beverage in this property d dollar amount of total assets in 90 room: total current asset = cash +ST investments+net receivablestinventories+prepaid expense-def tax current 451,975 Total Assets = Total current assets+ investments+ Net PPE + Total other assets 11900825 451975+72500+11250250+126100 e dollar amount of total assets in 360 room: There is a totalmistake in Net property & equip amount. When you addup, it is 33,330,000 whereas, it is incorrectly mentioned in question. Tot assets- Tot assets total current asset+investment+net ppe+ total other assets f current maturities of LT debt in 350 room1,685,000 It is very high than in 90room, as the LT debt might be due for redemption in the case of 350 room.