You are working as an accountant in Hotel Four Seasons. You are asked to make a meaningful comparison of your financial statements against the figures of your main competitor in town. Required: Choose the best method of analysis to compare the following figures (assets) of Four Seasons and Hotel Two Moons. Also explain your choice method (2-3 sentences). Use a prepared grid for your results! Show all figures with 2 decimal places! Hotel Four Seasons. December 31. 2020 Assets Cash 14,000 Marketable Securities 15,000 Accounts Receivable (net) 65,000 Inventories 9,000 Building 2,617,000 Furnishings and Equipment 943,000 Less: Accumulated Depreciation 565,000 Total 3,098,000 Hotel Two Moons, December 31, 2020 Assets Cash 134,000 Marketable Securities 898,000 Account Receivable (net) 1,981,000 Inventories 186,000 Building 5,207,000 Furnishing and Equipment 2,650,000 Less: Accumulated Depreciation 749,000 Total 10,307,000
You are working as an accountant in Hotel Four Seasons. You are asked to make a meaningful comparison of your financial statements against the figures of your main competitor in town.
Required: Choose the best method of analysis to compare the following figures (assets) of Four Seasons and Hotel Two Moons. Also explain your choice method (2-3 sentences). Use a prepared grid for your results! Show all figures with 2 decimal places!
Hotel Four Seasons. December 31. 2020
|
Assets |
|
|
Cash |
14,000 |
|
Marketable Securities |
15,000 |
|
|
65,000 |
|
Inventories |
9,000 |
|
Building |
2,617,000 |
|
Furnishings and Equipment |
943,000 |
|
Less: |
565,000 |
|
Total |
3,098,000 |
Hotel Two Moons, December 31, 2020
|
Assets |
|
|
Cash |
134,000 |
|
Marketable Securities |
898,000 |
|
Account Receivable (net) |
1,981,000 |
|
Inventories |
186,000 |
|
Building |
5,207,000 |
|
Furnishing and Equipment |
2,650,000 |
|
Less: Accumulated Depreciation |
749,000 |
|
Total |
10,307,000 |
The aim of comparison is to know the position, strength as compared with the other ones.
Comparisons can be different types like income statement comparison, balance sheet comparison.
Solution is as per data given.
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