In addition to the information given in P4.5, an income statement for the hotel for Year 0007 is available:

For Year 0007, calculate the following:

a. Gross return on assets

b. Net return on assets

c. Number of times interest is earned; discuss acceptability

d. Net income to sales revenue ratio; discuss hotel profitability

e. Return on stockholders’ equity; discuss hotel profitability.LO1

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Sales revenue Operating costs Operating income, before interest and tax Less: Interest Income before tax Less: Income tax Net Income $851,800 (796,900) $ 54,900 ( 26,100) $ 28,800 ( 7,200) $ 21,600