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You are considering investing in the bed and breakfast (B&B) industry. Two B&Bs. Burleigh Heaven and Miami Paradise, have been shortlisted for your consideration. Both
You are considering investing in the bed and breakfast (B&B) industry. Two B&Bs. Burleigh Heaven and Miami Paradise, have been shortlisted for your consideration. Both companies are about the same size, with similar assets and sales. The following is extracted from their statements of cash flows for the year ended 31 December 2016, Burleigh Heaven Miami Paradise $85,546 $ 66,135 (57.556) (55,570) Receipts from customers Cash payment to suppliers and employees Interest received Interest and other costs of finance paid Income taxed paid 440 271 (6,378) (17.168) (18,989) (13,228) The statements of financial position as at 31 December 2016 show the following balance for cash and cash equivalent for the two companies Burleigh Heaven Miami Paradise 3,993 Cash and cash equivalent 7.651 (a) Calculate the cash to daily expenses ratio for both companies. (Round answers to 1 decimal place. eg. 15.6) Burleigh Heaven Miami Paradise days days Cash to daily expenses
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