Instructions:

A. using the annexes included complete the "balance sheet" of "stratford hotel". using the "comparative" method and the "income statement" of "vacation Inn" using the "common size".

Comparative Balance Sheets Stratford Hotel ASSETS Current Assets 19X2 5,434,200 10,409,510 LIARILIMIES Current maturities of long-term-debt OWNERS' EQUITY Additional Pald in Capital Total Liabillities and Owners' Equity 10,409,510 N.M Not Meaningful VACATION INN COMMON-SIZE INCOME STATEMENTS Total Revenue Rooms-Revenue 1,883,48 1,124,300 1,041,200 185,334 Payroll &Related Expenses Other Expenses Department Income 847,248 626,165 208,448 218,532 697,241 235,431 249,620 76,675 135,515 Food& Beverage-Revenue Cost of Sales Payroll & Related Expenses Other Expenses Department incom 132,672 Telephone-Revenue 61,914 Cost of Sales Payroll Related Expenses Other Expenses Department Income 46,505 14,317 16,289 Total Operated Department Income 893,848 970,533 Undistributed Operating Expenses Administrative and general Data Processing Human Resources Transportation Marketing Property Operation and Malntenance Energy Costs 72,721 26,818 66,816 28,942 21,5S5 79,760 Total Undistributed Operating Expenses 388,985 Income Before Fixed Charges Rent, Property Taxes and Insurance Interest Depreclation and Amortization Income Before income Taxes Income Taxes Net Income 52,148 115,860 61,841 87,287 $ 94,582 INCOME STATEMENTS Income Staterments Grand Hote For the yoars ended Decomber 31, 18X1 and 192 Total Revenue 18X2 19X1 $1,300,000 $1,352,000 780,000 810,000 145,000 Payroll and Related Costs Othor Direct Expenses Departmental Income 606,000 Food and Beverages Cost of Sales Payroll and Related Expenses Other Direct Expenses 148,000 180,000 48,000 43.400 Dopartmental Income Telephone 31,000 10,500 Cost of Sales Payroll and Related Expenses Depertmental Incomo Rentals and Other Income Revenue Others Direct Expenses Total Operated Departments Income 697,100 Undistributed Operating Expenses Administratve & Genera $1,800 67,500 Property Operetion&Maintonance Energy cosls Total Undistributed Operating Expenses Inoomo Before Flked Chargos 100 415,800 Property Taxes 24,000 Interest Total Flboed Chargos 158,500 171,000 Income Before Income Taxns Income Taxes Net Income 97,800 Baiance Sheets Balanoc Sheets Grand Hotel December 31,19X0, 19X1, 19x2 19X2 Current Assots Total Current Assets Loss: Acoumulated Depreclation 000.00 09,000.00 Total Assets LIABILITIES AND OWNERS EQUITY Current Portion of Long-Term Debt Total Current Liablitlies Long-Term Debt Deferred Inoome Taxes Total Long Term Debl 85,000.00 660,000.00 645,000.00 $ Owners' Equity 0 Pald-In Capital in Excess of Par 110,000.00 Total Liablities and Owners' Equilty 176 Comparative Balance Sheets Stratford Hotel ASSETS Current Assets 19X2 5,434,200 10,409,510 LIARILIMIES Current maturities of long-term-debt OWNERS' EQUITY Additional Pald in Capital Total Liabillities and Owners' Equity 10,409,510 N.M Not Meaningful VACATION INN COMMON-SIZE INCOME STATEMENTS Total Revenue Rooms-Revenue 1,883,48 1,124,300 1,041,200 185,334 Payroll &Related Expenses Other Expenses Department Income 847,248 626,165 208,448 218,532 697,241 235,431 249,620 76,675 135,515 Food& Beverage-Revenue Cost of Sales Payroll & Related Expenses Other Expenses Department incom 132,672 Telephone-Revenue 61,914 Cost of Sales Payroll Related Expenses Other Expenses Department Income 46,505 14,317 16,289 Total Operated Department Income 893,848 970,533 Undistributed Operating Expenses Administrative and general Data Processing Human Resources Transportation Marketing Property Operation and Malntenance Energy Costs 72,721 26,818 66,816 28,942 21,5S5 79,760 Total Undistributed Operating Expenses 388,985 Income Before Fixed Charges Rent, Property Taxes and Insurance Interest Depreclation and Amortization Income Before income Taxes Income Taxes Net Income 52,148 115,860 61,841 87,287 $ 94,582 INCOME STATEMENTS Income Staterments Grand Hote For the yoars ended Decomber 31, 18X1 and 192 Total Revenue 18X2 19X1 $1,300,000 $1,352,000 780,000 810,000 145,000 Payroll and Related Costs Othor Direct Expenses Departmental Income 606,000 Food and Beverages Cost of Sales Payroll and Related Expenses Other Direct Expenses 148,000 180,000 48,000 43.400 Dopartmental Income Telephone 31,000 10,500 Cost of Sales Payroll and Related Expenses Depertmental Incomo Rentals and Other Income Revenue Others Direct Expenses Total Operated Departments Income 697,100 Undistributed Operating Expenses Administratve & Genera $1,800 67,500 Property Operetion&Maintonance Energy cosls Total Undistributed Operating Expenses Inoomo Before Flked Chargos 100 415,800 Property Taxes 24,000 Interest Total Flboed Chargos 158,500 171,000 Income Before Income Taxns Income Taxes Net Income 97,800 Baiance Sheets Balanoc Sheets Grand Hotel December 31,19X0, 19X1, 19x2 19X2 Current Assots Total Current Assets Loss: Acoumulated Depreclation 000.00 09,000.00 Total Assets LIABILITIES AND OWNERS EQUITY Current Portion of Long-Term Debt Total Current Liablitlies Long-Term Debt Deferred Inoome Taxes Total Long Term Debl 85,000.00 660,000.00 645,000.00 $ Owners' Equity 0 Pald-In Capital in Excess of Par 110,000.00 Total Liablities and Owners' Equilty 176