New Standards Restaurant

Transcription

1 7.1 Using this selection of some of the financial ratios of the New Standards Restaurant, write a short commentary on their liquidity position during the years analyzed. New Standards Restaurant Acid-test ratio 1.15:1 1.25:1 1.35:1 Current ratio 1.4:1 1.6:1 1.8:1 Inventory turnover 21 times 23 times 25 times Accounts receivable turnover 23 times 20 times 17 times 7.2 Determine the food cost percentage of the Corporate Road stop during the month of March 2010 based on the following financial information: Beginning food inventory 30, Ending food inventory 27, Food sales 408, Food purchases 139, The balance sheet and condensed income statement of the Sea View Motel are given below The Sea View Motel Condensed Income Statement For the year ended December 31 st 2009 Revenues 2,325, Cost of goods sold 307, Operating expenses 1,215, Contribution margin 802, Undistributed operating expenses 183, Income after undistributed operating expenses 619, Interest 36, Other fixed charges 262, Income before taxes 321, Income tax (32%) 102, Net income 218, The Sea View Motel Balance sheet December 31 st 2009 Assets Current assets Cash 157, Accounts receivable 186, Inventories 10, Total current assets 354, continues on next page Basic Management Accounting for the Hospitality Industry M. N. Chibili Page 1

2 Property and equipment: Land 93, Building (net) 465, Furniture & equipment (net) 138, Total property and equipment 696, Total assets 1,050, Liabilities and owners' equity Current Liabilities Accounts payable 270, Note payable 22, Current maturity of mortgage payable 37, Total current liabilities 330, Long term liabilities Notes payable 75, Mortgage payable 150, Total long term liabilities 225, Total Liabilities 555, Owners' Equity Common stock 165, Retained earnings 330, Total owners' equity 495, Total liabilities and owners' equity 1,050, Using the data provided in the statements of the Sea View Motel, calculate the following ratios: a. Acid-test ratio b. Asset turnover (assume the total assets stayed the same during 2009) c. Current ratio d. Debt to equity ratio e. Number of times interest earned ratio f. Operating efficiency ratio g. Profit margin 7.4 Using the information contained in 7.3, carry out the following activities establish the complete DuPont analysis as shown in exhibit 5 of chapter 7 make a brief performance report about the Sea View Motel for 2009 (using only the provided and valid information) 7.5 You are requested by the Vuvuzela Group Restaurant to help them determine certain elements of their balance sheet and income statement for their activities of 2009 based on the following assumptions: The accounts receivable turnover is based on total sales. The total assets are made up of only current assets and property and equipment. The balance sheet accounts balances did not change between 01/01/2009 and 31/12/2009 Their current assets are made up of cash, accounts receivable and inventory 7.5 continues on next page Basic Management Accounting for the Hospitality Industry M. N. Chibili Page 2

3 The information provided by the Vuvuzela Group Restaurant is limited to the following: Cash 22, Property and equipment 1,750, Total sales 2,450, Profit margin 8% Acid-test ratio 1.3 to 1 Current ratio 1.6 to 1 ROE 14% Accounts receivable turnover Determine their: a. Total current assets b. Total current liabilities c. Net income d. Asset turnover e. Total owners' equity f. Long term liabilities g. Return on assets h. Debt-equity ratio 24 times 7.6 De Rotterdamse has 320 rooms, operates all the days of the year, and provides you with the following data: Single rooms sold 30,000 30,225 31,500 32,625 Double rooms sold 56,700 57,753 58,644 59,346 Room revenue 9,583, ,203, ,922, ,260, Number of paid guests 106, , , ,784 Days in the year Based on the given data, you are asked to compute the following for the years indicated: 1. The average daily room rate (ADR). 2. The average number of guests per double room sold (assume that only one guest stayed in each single room sold). 3. The multiple occupancy percentage. 4. The paid occupancy percentage. 5. The revenue per available room (RevPAR). 7.7 Provided below are the balance sheets and condensed income statements of the Water Tower Hotel for three years which you are to use in calculating the ratios found after the data Water Tower Hotel Balance sheets December 31 st, 2009, 2010 and 2011 Assets Current assets Cash 26, , , Marketable securities 26, , , Accounts receivable 143, , , Inventories 26, , , Total current assets 221, , , continues on next page Basic Management Accounting for the Hospitality Industry M. N. Chibili Page 3

4 Property and equipment Land 260, , , Building (net) 5,070, ,920, ,770, Furniture and equipment (net) 624, , , Total property and equipment 5,954, ,760, ,550, Total assets 6,175, ,143, ,036, Liabilities and owners' equity Current liabilities 167, , , Long term liabilities 3,380, ,300, ,120, Total liabilities 3,547, ,468, ,315, Owners' equity Common stock 2,600, ,600, ,600, Retained earnings 27, , , Total owners' equity 2,627, ,675, ,721, Total liabilities and owners' equity 6,175, ,143, ,036, Water Tower Hotel Condensed Income Statements FTY ended December 31 st, 2009, 2010 and Revenues 3,120, ,920, ,800, Operated departmental expenses 1,612, ,960, ,340, Operated departmental income 1,508, ,960, ,460, Undistributed operating expenses 988, ,120, ,260, Inc. after undis operating expenses 520, , ,200, Fixed Charges 481, , , Income after fixed charges 39, , , Income Taxes (30%) 11, , , Net Income 27, , , You are asked initially to calculate for 2009, 2010 and 2011 the following ratios: a. The current ratio b. The operating efficiency ratio c. The profit margin d. The solvency ratio 2 You are then asked to calculate for 2010 and 2011 the following ratios: a. The accounts receivable turnover ratio b. The average collection period c. The return on owners' equity d. The return on total assets e. The property and equipment turnover ratio f. The total assets turnover ratio Basic Management Accounting for the Hospitality Industry M. N. Chibili Page 4

5 7.8 Determine the food and beverage cost percentages of the Barbeque Bazaar of July 2010 based on the following financial information: Beginning food inventory 45, Beginning beverage inventory 24, Ending food inventory 24, Ending beverage inventory 31, Food sales 647, Beverage sales 331, Food purchases 204, Beverage purchases 72, The 240-rooms Central Palace Hotel provides you with the following data of their 2010 operations: June July August September Single rooms sold 2,352 2,370 2,470 2,558 Double rooms sold 4,158 4,235 4,301 4,352 Room revenue 831, , , , Number of paid guests 9,306 9,315 9,348 9,381 Days in the month Based on the given data, you are asked to compute the following for the months indicated: 1. The average daily room rate (ADR). 2. The average number of guests per double room sold (assume that only one guest stayed in each single room sold). 3. The multiple occupancy percentage. 4. The paid occupancy percentage. 5. The revenue per available room (RevPAR) Based on the following assumptions related to the activities of the Skyline Hotel: The accounts receivable turnover is based on total sales. Total assets are made up of current assets and property and equipment. The balance sheet accounts balances did not change between the beginning of the year and the end of the year. Current assets are made up of cash, accounts receivable and inventory Use the following information: Cash 31, Property and equipment 2,345, Total sales 3,876, Profit margin 11% Acid-test 1.25 to 1 Current ratio 1.45 to 1 ROE 22% Accounts receivable turnover 26 times To determine the following: a. Total current assets b. Total current liabilities c. Net income d. Asset turnover e. Total owners' equity f. Long term liabilities g. Return on assets h. Debt-equity ratio Basic Management Accounting for the Hospitality Industry M. N. Chibili Page 5