Business Plan

COMPARING INDUSTRY RATIOS

You are interested in investing in a regional hotel company and have investigated the financial statements of four potential investments. Use the information in the table below to answer the questions at the bottom of the page.

| |Hotel N |Hotel J |Hotel C |Hotel W |

|Information from the income statement |

|Total revenue |10,099,000 |3,816,000 |428,806 |1,277,550 |

|Total expenses |9,503,000 |3,618,000 |354,461 |1,822,748 |

|Information from the balance sheet |

|Current assets |1,946,000 |1,020,000 |68,629 |526,549 |

|Total assets |8,668,000 |8,183,000 |262,388 |3,783,127 |

|Current liabilities |2,356,000 |895,000 |101,091 |693,809 |

|Total liabilities |4,587,000 |5,944,000 |456,441 |3,089,318 |

|Total number of common stock outstanding |225,800 |389,000 |32,312 |168,238 |

|  |Hotel N |Hotel J |Hotel C |Hotel W |

|2. Return on sales |0.059015744 |0.051886792 |0.173376772 |-0.426752769 |

|3. Current ratio...