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ABC Hotel Financial Analysis 2019

The company saw an increase in total assets from 2018 to 2019 due to an increase in property and equipment. Total liabilities increased slightly due to an increase in accounts payable. Stockholders' equity increased as retained earnings grew from 2018 to 2019. Revenues increased from 2018 to 2019 while expenses also grew, leading to higher operating income and net income for 2019 compared to 2018.

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145 views1 page

ABC Hotel Financial Analysis 2019

The company saw an increase in total assets from 2018 to 2019 due to an increase in property and equipment. Total liabilities increased slightly due to an increase in accounts payable. Stockholders' equity increased as retained earnings grew from 2018 to 2019. Revenues increased from 2018 to 2019 while expenses also grew, leading to higher operating income and net income for 2019 compared to 2018.

Uploaded by

val
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Financial Planning

Name: _____________________ Score: ____________


Year and Section: ____________
ABC Hotel, Inc.
Comparative Balance Sheets
December 31, 2019 and 2018
Increase (Decrease)
2019 2018 Amount Percent
Assets
Current Assets
Cash P 70,392 P 68,250 P
Accounts Receivable (net) 18,549 84,978
Inventory 23,242 97,097
Prepaid Expenses 67,710 76,542
Total Current Assets P 179,893 P 326,867 P
Property and Equipment
Property and Equipment (net) 490,503 310,987
Total Assets P 670,396 P 637,854 P

Liabilities and Stockholders' Equity


Current Liabilities
Accounts Payable P 58,214 P 39,135 P
Bank Loans 71,672 56,769
Notes Payable 30,000 30,000
Total Current Liabilities P 159,886 P 125,904 P
Long-term Liabilities
Notes Payable (11%) 239,000 269,000
Total Liabilities P 398,886 P 394,904 P

Stockholders' Equity
Preferred Shares, P8 dividend, P100 par P 70,000 P 70,000 P
Common Shares, P1 par value 10,000 10,000
Additional Paid-in Capital 90,000 90,000
Retained Earnings 101,510 72,950
Total Stockholders' Equity P 271,510 P 242,950 P
Total Liabilities and Stockholders' Equity P 670,396 P 637,854 P

ABC Hotel, Inc.


Comparative Income Statements
Years ended December 31, 2019 and 2018
Increase (Decrease)
2019 2018 Amount Percent
Revenues P 2,000,000 P 1,801,802 P
Expenses
Cost of Goods Sold P 1,472,000 P 1,309,910 P
Selling 248,000 230,000
Administrative 138,000 142,000
Total Expenses P 1,858,000 P 1,681,910 P
Operating Income P 142,000 P 119,892 P
Interest Expense 27,907 29,270
Income before Taxes P 114,093 P 90,622 P
Income Taxes 39,933 31,718
Net Income P 74,160 P 58,904 P

Dividends to preferred stockholders 5,600 5,600


Net income remaining for common
stockholders P 68,560 P 53,304 P
Dividends to common stockholders 40,000 32,000
Net income added to retained earnings P 28,560 P 21,304 P
Retained earnings, beginning 72,950 51,646
Retained earnings, ending P 101,510 P 72,950 P

Required: Evaluate the company's short-term financial position, leverage, managerial efficiency and
profitability using the increase-decrease method of analysis.

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