The Mantle Inn commenced operations on January 1, 20X1, and has been operating for two the Inn's financial condition. Balance sheets and condensed income statements for the first Problem 21 insight into 294 Chapter 5 years. Assume that you are the new assistant manager and desire to gain some ; Balance Sheets Mantle Inn December 31, 20X1 and 20X2 20X1 two years are as follows: 20X2 15,000 50,000 60,000 12,000 $ 10,000 -0- (dbor $ Assets Current Assets: Cash 55,000 10,000 Marketable Securities Accounts Receivable Inventories 137,000 75,000 Total Current Assets 100,000 1,900,000 200,000 2,200,000n Property and Equipment: Land 100,000 1,950,000 240,000 2,290,000 $2,365,000 Building (net) Furniture & Equipment (net) Total Property & Equipment ond $2,337,000 Total Assets dee) Liabilities and Owners' Equity $ 55,000 1,300,000 $ 60,000 1,250,000 1,310,000 2$ Current Liabilities Long-Term Debt 1,355,000 Total Liabilities Owners' Equity Common Stock 1,000,000 10,000 1,000,000 Retained Earnings 27,000 Total Owners' Equity Total Liabilities and Owners' Equity 1,010,000 $2,365,000 1,027,000 $2,337,000 Condensed Income Statements Mantle Inn0S For the years ended December 31, 20X1 and 20X2 20X1 Sales 20X2 Operated Department Expense Operated Department Income Undistributed Operating Expenses $1,200,000 $1,400,000 700,000 620,000 580,000 380,000 700,000 400,000 Gross Operating Profit Non-Operating Expenses Income Taxes 200,000 185,000 300,000 200,000 45,000 55,000 Net Income 5,000 2$ $ 10,000 %24 %24 Required: 1. Calculate the following ratios for both years: a. Current ratio b. Solvency ratio c. Profit margin d. Operating efficiency sld 2. Calculate for 20X2 the following ratios: a. Property and equipment turnover ratio b. Total assets turnover ratio C. Accounts receivable turnover ratio d. Number of days accounts receivable outstanding Return on total assets e. f. Return on owners' equity Problem 22 f four hotels. The corporation's
The Mantle Inn commenced operations on January 1, 20X1, and has been operating for two the Inn's financial condition. Balance sheets and condensed income statements for the first Problem 21 insight into 294 Chapter 5 years. Assume that you are the new assistant manager and desire to gain some ; Balance Sheets Mantle Inn December 31, 20X1 and 20X2 20X1 two years are as follows: 20X2 15,000 50,000 60,000 12,000 $ 10,000 -0- (dbor $ Assets Current Assets: Cash 55,000 10,000 Marketable Securities Accounts Receivable Inventories 137,000 75,000 Total Current Assets 100,000 1,900,000 200,000 2,200,000n Property and Equipment: Land 100,000 1,950,000 240,000 2,290,000 $2,365,000 Building (net) Furniture & Equipment (net) Total Property & Equipment ond $2,337,000 Total Assets dee) Liabilities and Owners' Equity $ 55,000 1,300,000 $ 60,000 1,250,000 1,310,000 2$ Current Liabilities Long-Term Debt 1,355,000 Total Liabilities Owners' Equity Common Stock 1,000,000 10,000 1,000,000 Retained Earnings 27,000 Total Owners' Equity Total Liabilities and Owners' Equity 1,010,000 $2,365,000 1,027,000 $2,337,000 Condensed Income Statements Mantle Inn0S For the years ended December 31, 20X1 and 20X2 20X1 Sales 20X2 Operated Department Expense Operated Department Income Undistributed Operating Expenses $1,200,000 $1,400,000 700,000 620,000 580,000 380,000 700,000 400,000 Gross Operating Profit Non-Operating Expenses Income Taxes 200,000 185,000 300,000 200,000 45,000 55,000 Net Income 5,000 2$ $ 10,000 %24 %24 Required: 1. Calculate the following ratios for both years: a. Current ratio b. Solvency ratio c. Profit margin d. Operating efficiency sld 2. Calculate for 20X2 the following ratios: a. Property and equipment turnover ratio b. Total assets turnover ratio C. Accounts receivable turnover ratio d. Number of days accounts receivable outstanding Return on total assets e. f. Return on owners' equity Problem 22 f four hotels. The corporation's
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Transcribed Image Text:The Mantle Inn commenced operations on January 1, 20X1, and has been operating for two
the Inn's financial condition. Balance sheets and condensed income statements for the first
Problem 21
insight into
294 Chapter 5
years. Assume that you are the new assistant manager and desire to gain some ;
Balance Sheets
Mantle Inn
December 31, 20X1 and 20X2
20X1
two years are as follows:
20X2
15,000
50,000
60,000
12,000
$ 10,000
-0-
(dbor $
Assets
Current Assets:
Cash
55,000
10,000
Marketable Securities
Accounts Receivable
Inventories
137,000
75,000
Total Current Assets
100,000
1,900,000
200,000
2,200,000n
Property and Equipment:
Land
100,000
1,950,000
240,000
2,290,000
$2,365,000
Building (net)
Furniture & Equipment (net)
Total Property & Equipment
ond
$2,337,000
Total Assets
dee)
Liabilities and Owners' Equity
$ 55,000
1,300,000
$ 60,000
1,250,000
1,310,000
2$
Current Liabilities
Long-Term Debt
1,355,000
Total Liabilities
Owners' Equity
Common Stock
1,000,000
10,000
1,000,000
Retained Earnings
27,000
Total Owners' Equity
Total Liabilities and Owners' Equity
1,010,000
$2,365,000
1,027,000
$2,337,000
Condensed Income Statements
Mantle Inn0S
For the years ended December 31, 20X1 and 20X2
20X1
Sales
20X2
Operated Department Expense
Operated Department Income
Undistributed Operating Expenses
$1,200,000
$1,400,000
700,000
620,000
580,000
380,000
700,000
400,000
Gross Operating Profit
Non-Operating Expenses
Income Taxes
200,000
185,000
300,000
200,000
45,000
55,000
Net Income
5,000
2$
$ 10,000
%24
%24
Transcribed Image Text:Required:
1. Calculate the following ratios for both years:
a. Current ratio
b. Solvency ratio
c. Profit margin
d. Operating efficiency
sld
2. Calculate for 20X2 the following ratios:
a. Property and equipment turnover ratio
b. Total assets turnover ratio
C. Accounts receivable turnover ratio
d. Number of days accounts receivable outstanding
Return on total assets
e.
f. Return on owners' equity
Problem 22
f four hotels. The corporation's
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1-a. Current Ratio:
VIEW1-b. Solvency Ratio:
VIEW1-c. Profit Margin:
VIEW1-d. Operating Efficiency:
VIEW2-a. Property and Equipment Turnover Ratio:
VIEW2-b. Total Assets Turnover Ratio:
VIEW2-c. Accounts Receivable Turnover Ratio:
VIEW2-d. Number of Days Accounts Receivable Outstanding (NDARO):
VIEW2-e: Return on Total Assets:
VIEW2-f. Return on Owner’s Equity:
VIEW
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