1. the the club can and still :2. If the Brooklyn Club is currently in by how much282 Chapter 5Required:good rating for credit and collections.must the receivable balance be reduced to achieve an ACP of forty days?Problem 5The Robinson Hotel has the following ratios:Return on equity:Total asset turnover:Return on sales:10 percent1.5 times5 percentThe total assets of the Robinson Hotel equal $5,000,000. Assume the balance sheet numbereat the beginning and end of the year are the same.Required:1. Determine the firm's total annual sales.2. Determine the firm's net income.3. Determine the amount of the firm's total debt.Problem 6Part A:The Aaron Hotel, a 100-room limited-service operation, has provided you with the followingdata for the months of May and June:MayJuneSingle rooms soldDouble rooms sold000009'1,610$222,7204,653Room revenue$221,000Number of paid guests4,520Required:1. Compute the paid occupancy for May.2. What was the monthly ADR for June?3. What was the monthly RevPAR for May?4. What was the average number of guests per double room during June? (Assume oluyone guest stayed in each single room.)Part B:The Burdette Café's beginning and ending food inventory for 20X4 total $12,000 and $14,000,respectively. Activity during 20X4 was as follows:(1)(2) Employee mealsFood purchases$160,000$3,000$2,000$480,000(3)Promotional mealsFood sales() Ratio Analysis 288. Equipment is purchased withlong-term notes.9 Utility expenses are paid (they10. A cash dividend is paid.Problem 2MeDaniel's Place has selected financial ratios for 20X1-20X3 as follows:20X220X3Current ratioAccounts receivable turnover1.151.2Inventory turnover13122322Asset turnoverDebt-equity ratio1.31.41.51.51.41.3Times interest earned3.83.9Sales for the three years were $1 million, $1.2 million, and $1.4 million, respectively.Required:1. Assume total assets did not change during 20X3. Determine the total debt at the end of20X3,2. If cost of sales were 10 percent of total sales, what was the average inventory for 20X3?3. Comment on the changing liquidity of McDaniel's Place over the three-year period.4. Comment on the changing solvency of this business over the three-year period.Problem 3The Alston Inn is managed by Inns, Inc. The management contract requires 6 percent oftotal revenue to be transferred to the replacement reserves to cover future renovationsand equipment replacements. Alston Inn's debt service payment is $10,000 per month. Thelodging property has 200 guestrooms, an ADR of $100, and a paid occupancy of 70 percent.Its room revenue is 70 percent of its total revenue and its net operating income is 15 percentof its total revenue.Required:1. Determine the Inn's annual total revenue.2. Determine the Inn's annual net operating income.3. Determine the Inn's debt service coverage ratio for the year.Problem 4The Brooklyn Club has annual revenues of $8 million and all sales are on account. Goodcredit and collection performance in the club industry result in a forty-day ACP. Assume ayear has 365 days.

As per the honor code, We’ll answer the first question since the exact one wasn’t specified. Please…

2 Ifthe Brooklyn Club is currently collecting must the receivable balance be reduced to achieve an ACPof forty days! me poo Problem 5 The Robinson Hotel has the following ratios: Total asset turmover: Return on sales: Anba uo un 5 percent Juaad ot The total assets of the Robinson Hotel equal $5,000,000. Assume the balance sheet numbere at the beginning and end of the year are the same. painbay 1. Determine the firm's total annual sales. 2 Determine the firm's net income. 3. Determine the amount of the firm's total debt.

2 Ifthe Brooklyn Club is currently collecting must the receivable balance be reduced to achieve an ACPof forty days! me poo Problem 5 The Robinson Hotel has the following ratios: Total asset turmover: Return on sales: Anba uo un 5 percent Juaad ot The total assets of the Robinson Hotel equal $5,000,000. Assume the balance sheet numbere at the beginning and end of the year are the same. painbay 1. Determine the firm's total annual sales. 2 Determine the firm's net income. 3. Determine the amount of the firm's total debt.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter4: The Balance Sheet And The Statement Of Shareholders' Equity

Section: Chapter Questions

Problem 16P: Ratios Analyses: McCormick Refer to the information for McCormick above. Additional information for...

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