Compare the ratios of Hotels A&B as provided below: Current ratio Acid test ratio Accounts receivable Turnover Hotel A Operating cash flow to current liabilities 1.8 Debt ratio 1.5 Inventory turnover 15.6 1.3 REVPAR 8.3 0.48 Number of time Interest earned ratio 4.3 Profit margin Operating efficiency 25.4% Return on equity Average daily rate 11.2% 14.3% $50.5 $40.4 Hotel B 2.2 0.9 1.3 12.3 6.1 0.25 2.5 12.3% 18.3% 10.2% $58.4 $37.9 Requirements: a. Which hotel has better liquidity? Why? b. Which hotel is more solvent? Why? c. Which hotel is more profitable in terms of management performance. Why? d. Which hotel has better room operation performance? Why? e. Calculate the occupancy rates of Hotels A and B respectively.

5. (20 points) Compare the ratios of Hotels A\&B as provided below: a. Which hotel has better liquidity? Why? b. Which hotel is more solvent? Why? c. Which hotel is more profitable in terms of management performance. Why? d. Which hotel has better room operation performance? Why? e. Calculate the occupancy rates of Hotels A and B respectively