You are have just been hired to mange the Hotel Gift/Sundries Shop. The Hotel Manager provides you with the following information: Hotel Gift/Sundries Shop Summary Balance Sheet Assets Current Assets Cash Hotel Gift/Sundries Shop Summary Income Statement Revenue 2020 $1.800 250 $1,400,000 $400,750 $390,000 $10,250 2018 2019 2020 2018 2019 $3,000,000 $2,738,000 $2,325,000 $2,050,000 $675.000 Cost of Goods Sold $117,491 $92,273 Gross Profit $688.000 $42,356 $1,252 Accounts Receivable $4,125 $2,534 Selling General & Admin $702,500 $706,000 $30,000 $73,608 $96,286 (527,500) $25,000 $146,616 $37,793 Inventory (518,000) $5,000 $99,807 $40,808 Net Income Current Assets Fixed Assets Total Assets Liabilities $184,408 $140,615 $169,894 $199,247 $36,650 $235,897 (551,489) $184,408 $180,231 $29,873 $210,104 $201,498 $27,635 $229,133 (559,239) Current Liabilities Long Term Liabilities Total Liebilities Total Equity Total Liabilities and STE (569,489) $140,615 $169,894 Based on the information: 1. Calculate one ratio for the shop for 2018-2020. Interpret your result and what it means for the store. 2. Based on the information, how do you think the store is performing? Use common size and/or ratio analysis to explain what items/issues concern you.
You are have just been hired to mange the Hotel Gift/Sundries Shop. The Hotel Manager provides you with the following information: Hotel Gift/Sundries Shop Summary Balance Sheet Assets Current Assets Cash Hotel Gift/Sundries Shop Summary Income Statement Revenue 2020 $1.800 250 $1,400,000 $400,750 $390,000 $10,250 2018 2019 2020 2018 2019 $3,000,000 $2,738,000 $2,325,000 $2,050,000 $675.000 Cost of Goods Sold $117,491 $92,273 Gross Profit $688.000 $42,356 $1,252 Accounts Receivable $4,125 $2,534 Selling General & Admin $702,500 $706,000 $30,000 $73,608 $96,286 (527,500) $25,000 $146,616 $37,793 Inventory (518,000) $5,000 $99,807 $40,808 Net Income Current Assets Fixed Assets Total Assets Liabilities $184,408 $140,615 $169,894 $199,247 $36,650 $235,897 (551,489) $184,408 $180,231 $29,873 $210,104 $201,498 $27,635 $229,133 (559,239) Current Liabilities Long Term Liabilities Total Liebilities Total Equity Total Liabilities and STE (569,489) $140,615 $169,894 Based on the information: 1. Calculate one ratio for the shop for 2018-2020. Interpret your result and what it means for the store. 2. Based on the information, how do you think the store is performing? Use common size and/or ratio analysis to explain what items/issues concern you.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:You are have just been hired to mange the Hotel Gift/Sundries Shop. The Hotel
Manager provides you with the following information:
Hotel Gift/Sundries Shop
Summary Balance Sheet
Assets
Current Assets
Hotel Gift/Sundries Shop
Summary Income Statement
Revenue
2018
2019
2020
2018
2019
2020
$3,000,000 $2,738,000 51.800 250
$2,325,000 $2,050,000 $1,400,000
$688.000
$706,000
($18,000)
Cost of Goods Sold
$117,491
$4,125
$25,000
$146,616
$37,793
$92,273
$2,534
$5,000
$99,807
$40,808
$42,356
$1,252
$30,000
$73,608
$96,286
Gross Profit
Selling, General & Admin
$675.000
$702,500
(527,500)
$400,250
$390,000
Cash
Accounts Receivable
Inventory
Net Income
$10,250
Current Assets
Fixed Assets
Total Assets
Liabilities
$184,408
$140,615
$169,894
$180,231
$29,873
$210,104
(569,489)
$140,615
$201,498
$27,635
$229,133
(559,239)
$169,894
Current Liabilities
Long Term Liabilities
Total Liabilities
Total Equity
Total Liabilities and STE
$199,247
$36,650
$235,897
(551,489)
$184,408
Based on the information:
1. Calculate one ratio for the shop for 2018-2020. Interpret your result and
what it means for the store.
2. Based on the information, how do you think the store is performing? Use
common size and/or ratio analysis to explain what items/issues concern you.
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