RHIM 4322 * Homework 2 * Vertical and Horizontal Analyses Please complete and show work in an excel spreadsheet following the Demo Exercise. Do transfer the financial data to the spreadsheet. However, no need to show the explanatory notes like what is being provided in the Demo Exercise. Submit the Homework spreadsheet using this filename "RHIM4322-Last_Name-Homework 2" 1. Conduct a vertical analysis (common-size analysis) for the income statements of Boatman Hotel for the months ended March 31 and April 30, 2016. March April Revenues: Rooms 375.236425,105 Food and Beverage 186,253 176,523 Telecommunications 4.213 5,326 Other Income 46,879 49,654 Total Revenues Cost of Sales: Rooms 130.256154,987 Food and Beverages 142.516 135.216 Telecommunications 3.453 4.123 Other Income 35,648 41,213 Total Cost of Sales 311,873 335,539 Gross Profit Rooms 244,980 270.118 Food and Beverages 43,737 41,307 Telecommunications 760 1,203 Other Income 11.231 8.441 Total Gross Profit Operating (Controllable) Expenses: Administration & General 11.605 18,256 Marketing 41.219 44,362 Franchise Fees 21.005 24,032 Property Operations and Maintenance 37,456 38,612 Utilities 32,156 36,459 Total Operating Expenses 143.441 161,721 Operating Income Other (Non-controllable) Expenses: Management Fee 6,145 6,425 Property Taxes 25,613 25,613 Reserve for Capital Improvements 18,321 20,153 Insurance 6,901 6,852 Interest Expense 75.004 78,450 Total Non-controllable Expenses 131,984 137,493 Income Before Income Taxes 2. Conduct a horizontal analysis (comparative analysis) for the balance sheets of Gian's Italian Cuisine as of November 30 and December 31, 2016. November December Current Assets: Cash 9,000 14.000 Accounts Receivable 10,000 11,500 Food Inventory 4,000 3,538 Beverage Inventory 6,000 3,950 Prepaid Rent 18,000 20,000 Total Current Assets Fixed Assets: Furniture, Fixture & Equipment (FF&E) 7,500 9,870 Accumulated Depreciation (FF&E) (3.030) (4.000) Building 20,000 20,000 Long term Investments 5,000 8,580 Long Term Assets 29,470 34,450 Total Assets 7,000 5,400 5,500 6,790 6,540 3,500 Current Liabilities: Accounts Payable Accrued Payroll Accrued Taxes Total Current Liabilities Long Term Debt Total Liabilities Owner's Equity Retained Earnings Total Owner's Equity Total Liabilities and Owner's Equity 10.000 12.000 39.000 40,620 9,570 17,988 1