Nilam Patel is the primary stockholder in two hotel corporations. One corporation owns a 90room economy property located in the suburbs of a large western town. The other corporation is a 350room fullservice 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.

December 31		Common Size
	90Room Property	350Room Property	90Room Property (%)	350Room Property (%)
ASSETS
Current Assets
Cash
Cash in House Banks		$86,000
Cash in Demand Deposits	85,000	330,250
Total Cash	103,500	416,250
ShortTerm Investments	56,000	165,000
Receivables
Accounts Receivable	150,000	327,150
Notes Receivable	35,000	136,250
Other	750	30,800
Total Receivables	185,750	494,200
Less Allowance for Doubtful Accounts	19,250
Net Receivables	166,500	431,900	1.4	1.1
Due from Management Company		50,000	0.0	0.1
Food Inventories	15,125	69,750	0.1	0.2
Beverage Inventories		42,550	0.0	0.1
Gift Shop Inventories	300	6,950	0.0	0.0
Supplies Inventories	6,550	13,550	0.1	0.0
Prepaid Expenses	56,000	120,100	0.5	0.3
Deferred Income TaxesCurrent	48,000	135,000	0.4	0.3
Total Current Assets
Investments	72,500	274,150	0.6	0.7
Property and Equipment
Land	2,000,000	8,450,000
Building	6,500,000	18,500,000
Leaseholds and Leasehold improvements	2,037,250	5,850,000
Furnishings and Equipment	1,288,000	3,105,000
Total Property and Equipment	11,825,250	35,905,000
Less Accumulated Depreciation and Amortization	575,000	2,575,000
Net Property and Equipment	11,250,250	38,480,000
Other Assets
Intangible Assets		75,000	0.0	0.2
Deferred Income TaxesNoncurrent	66,000	158,000	0.6	0.4
Operating Equipment	35,100	111,000	0.3	0.3
Restricted Cash	25,000	95,000	0.2	0.2
Total Other Assets	126,100	439,000	1.1	1.1
TOTAL ASSETS			100.0	100.0
LIABILITIES AND OWNERS' EQUITY
Current Liabilities
Notes Payable
Banks	17,500	116,250	0.1	0.3
Others	8,000	17,500	0.1	0.0
Total Notes Payable	25,500	133,750	0.2	0.3
Accounts Payable	2,500	125,100
Accrued Expenses	45,000	42,500
Advance Deposits	500	42,250
Income Taxes Payable	15,000	78,000
Deferred Income TaxesCurrent	40,000	235,000
Current Maturities of LongTerm Debt	420,000
Other	50,000	58,000
Total Current Liabilities	598,500	2,399,600	5.0	5.9
Longterm Debt, Net of Current Maturities
Mortgage Note		24,383,030
Obligations Under Capital Leases	18,000	385,000	0.2	0.9
Total LongTerm Liabilities	6,868,000
Owners' Equity
Common Stock	500,000	2,000,000
Paid in Capital		8,711,500
Retained Earnings	879,325	2,765,070
Total Owners' Equity	4,434,325	13,476,570
TOTAL LIABILITIES AND OWNERS' EQUITY			100	100

1. What was the amount of cash in the 90room property's Cash in House Banks account at year end?
2. What is the amount of Allowance for Doubtful Accounts in the 350room property? Do you think it is excessive? Explain your answer?
3. What would explain the lack of a beverage inventory value in the 90room hotel?
4. What was the dollar amount of Total Assets in the 90room hotel?
5. What was the dollar amount of Total Assets in the 350room hotel?
6. What was the dollar amount of Current Maturities of LongTerm Debt in the 350room property? Why is that amount likely so much higher than for the 90room property?
7. What was the dollar amount of Paid in Capital for the 90room property?
8. What is the Owners' Equity percentage of Total Assets in the 90room property? What is it in the 350room property?