Conduct a vertical analysis (common-site analysis) for the income statements of Pat's Place using the years ending December 31, 2015 and 2016 information available 1. Pat's Place 2015 2016 2015 % 2016 Revenues: Rooms Food 976,000 604.000 50,000 1,041,000 626,000 37.06 36.42 064 52.000 100.00 100.00 0.00 250,400 476,000 68,000 264.000 507.000 68,000 31.52 59.92 8.56 31.47 60.43 8.10 0.05 0.51 0.46 Telephone Total Revenues Direct Expenses (Cost of Sales): Rooms Food Telephone Total Cost of Sales Gross Profit: Rooms Food Telephone Total Cross Profit Operating (Controllable) Expenses: 839.000 48.74 48.81 794,400 725,600 128,000 -18,000 777,000 119.000 -16,000 44.52 7.85 -1.10 45.20 6.92 -0.93 51.19 880,000 51.26 835,600 Operating (Controllable) Expenses: 11.96 119 195,000 65,000 206,000 68,000 3.99 1.96 0.03 4.23 3.96 69,000 101,000 68,000 102.000 6.20 5.93 430,000 444,000 26 38 25.80 405,600 436,000 Administration & General Marketing Property Operation and Maintenance Utility Costs Total Operating Expenses Operating Income Other (Non- controllable) Expenses: Rent Property Taxes & Insurance Depreciation Interest Total Non- controllable Expenses Income Before Income Taxes Income Taxes 12.27 11.69 200,000 116,000 55,000 201.000 116,000 $2,000 7.12 6.75 3.03 33 371,000 369.000 2.12 3.90 0.56 17,000 043 7.000 Net Income QUESTION 2 1 points Saw wer From the vertical analysis and answers, what in the Operating Protit Margin for Period 1 2 and Period 2 QUESTIONS points Save A What is the highest cott/expense? 1 points Save As QUESTION 4 Which item had the biggest change in nom period 1 to period 2? 12 points An QUESTIONS QUESTIONS 2 points Save As. In the above horizontal analysis, nameter sitive trends from period 1 and period 2 QUESTION 2 Seven In the above horizontal analysis, name two negative trends from period 1 and period Danforth Hotels (in millions 2015 2016 Current Assets: Schange Cash 82 298 216 Accounts Receivable 288 269 Marketable Securities 100 112 12 12.00 Tuventory 193 158 -1813 Other current assets 64 90 26 40.63 Total Current Assets Fixed Assets: 3,641 3,520 (121) 332 Furniture, Fixture & Equipment, net Management and Franchise Contracts, net 383 347 -36 -9.40 1.230 Goodwill 1,230 0 0.00 568 599 Long term Investments 280 328 26.15 Other long term assets Other long term assets 260 328 68 26.15 Long Term Assets Total Assets 6,809 6,951 142 Current Liabilities: 540 601 61 Accounts Payable and Accrued Expenses Current maturities of long- term debit 11.30 329 118 211 -64.13 Accrued Taxes 4 0 Total Current Liabilities Long Term Debt 3,709 3.560 149 -299 Total Liabilities 6.53 Owner's Equity 1,807 1,99 420 670 250 Retained Earnings Total Owner's Equity Total Liabilities and Owner's Equity 142 2.014 6,809 6,951
