8. BONUS: Nilam Patel is the primary stockholder in two hotel corporations. One corporation owns a 90-room economy property located in the suburbs of a large western town. The other corporation is a 350-room full-service convention hotel in the downtown city center for which Nilam has employed a management company to operate the property Nilam is preparing balance sheets for both properties using a common size format. Complete the two balance sheets. Then answer the questions that follow. Nilam Patel's Two Hotel's Balance Sheets December 31 90-Room Property 350-Room Property Common Size 90-Room 350-Room Property (%) Property (%) ASSETS Current Assets Cash Cash in House Banks Cash in Demand Deposits Total Cash 85,000 103,500 $86,000 380,250 416,250 56,000 Short-Term Investments Receivables 165,000 Accounts Receivable Notes Receivable Other Total Receivables Less Allowance for Doubtful Accounts 150,000 35,000 750 327,150 136,250 30.800 494,200 185,750 19,250 166,500 Net Receivables 431,900 1.4 1.1 Due from Management Company 50,000 0.0 0.1 15,125 0.1 Food Inventories Beverage Inventories Gift Shop Inventories Supplies Inventories 69.750 42,550 6,950 0.2 0.1 0.0 0.0 300 0.0 6,550 13,550 0.1 0.0 (continued) 154 Chapter 4 The Balance Shoot Nilam Patel's Two Hotels Balance Sheets (C) 120,100 0.5 04 le 56.000 4 000 Prepaid Expenses Deferred Income Taxes Current Total Current Assets 09 274.150 0.6 72.500 Investment 07 Property and Equipment Land Building Leaseholds and Leasehold improvement Furnishing and Equipment Total Property and Equipment Less Accumulated Depreciation and Amortization Ner Property and Equipment 2,000,000 6,500,000 2.087.250 1.288.000 11.825.250 575.000 18,500,000 5.850.000 105,000 35.605,000 2,575.000 11.250,250 38.480,000 0.0 Other Aucts Intangible Assets Deferred Income Taxes Non current Operating Equipment Restricted Cash Total Other Assets 75,000 150 000 111.000 95.000 60,000 35.100 25.000 126.100 0.6 0.3 0.2 04 0.3 0.2 1:1 02 1.1 199,000 TOTAL ASSETS 100.0 100.0 LIABILITIES AND OWNERS' EQUITY Current Liabilities Notes Payable Banks Others Total Notes Payable 08 17.500 8.000 25,500 116.250 17.500 133,750 0.1 0.1 00 03 0.2 Accounts Payable Accrued Expenses Advance Deposit Income Taxes Payable Deferred Income Taxes Current Current Maturities of Long Term Debe Other Total Current Liabilities 2,500 15,000 500 15,000 10,000 120,000 50,000 598,500 125.100 42.500 42,250 78.000 255,000 58.000 2,399,600 5,0 39 Long-term Debt, Net of Current Maturities Mortgage Note Obligations Under Capital Leases Total Long-Term Liabilities 0.9 24,383,030 385,000 0.2 18,000 6,868,000 Owners' Equity Common Stock Paid in Capital Retained Earnings Total Owners' Equity 500,000 2,000,000 8,711,500 2.765,070 13,476,570 879,325 4.434,325 TOTAL LIABILITIES AND OWNERS' EQUITY 100 100 a. What was the amount of cash in the 90-room property's Cash in House Banks account at year end? b. What is the amount of Allowance for Doubtful Accounts in the 350-room property? Do you think it is excessive? Explain your answer? c. What would explain the lack of a beverage inventory value in the 90-room hotel? d. What was the dollar amount of Total Assets in the 90-room hotel? e. What was the dollar amount of Total Assets in the 350-room hotel? f. What was the dollar amount of Current Maturities of Long-Term Debt in the 850-room property? Why is that amount likely so much higher than for the 90-room property? g. What was the dollar amount of Paid in Capital for the 90-room property? h. What is the Owners' Equity percentage of Total Assets in the 90-room property? What is it in the 350- room property