What goes on the balance sheet income statement and cash flow statement Hospitality Financial Analysis HFT 3424 Test Two Review Test Date 3 3 15 Balance Sheet o Assets Current Long term Current Assets Cash Accounts Receivable Inventories Long Term Assets Property Plant Equipment o Liabilities Current Long term Current Liabilities Accounts Payable Notes Payable Current Portion of Long Term Debt Unearned Revenue Salaries Payable Income Tax Payable Long term Liabilities Bank Loans Line of Credit Lease Obligations o Stockholder s Equity Common Stock Preferred Stock Additional Paid in Capital Retained Earnings Donated Capital Treasury Stock Income Statement o Revenues Center Room Revenues Telephones Revenues Gift Shop Revenues Restaurant Revenues Beverage Revenues Banquet Revenues o Profit Center Department Profits Rooms Profits Telephones Profits Gift Shop Profits Restaurant Profits Beverage Profits o Expense Center Administrative Utilities Repairs and Maintenance Accident Expense Training and Relocation Sales and Marketing o Fixed Expenses deductions Statement of Cash Flows o Operating Cash o Investing Cash o Financing Cash What is an expense Operating Expenses o Payroll Fixed Variable o Cost of Goods Sold Food Golf Spa Gifts o Marketing o Repair and Maintenance o Training and Education o Utilities Departmentalizing Expenses o Rooms o Food and Beverage o Golf o Spa o Engineering o Marketing and Sales o Administration What is not an expense o A new roof o Land purchases o A new irrigation system o A new computer software system o A building o Renovations o Equipment purchases for a Certain Specific Time What are unallocated expenses o Electricity o General Manager Wages o Insurance o Depreciation o Taxes Current Assets o Cash o Marketable Securities o Accounts Receivable o Inventories o Pre Paid Expenses Non Current Assets Which types of things would you find on a balance sheet The balance sheet shows the values of Assets Liabilities and Owner s Equity What are assets Assets are something that the Company Owns Assets are something that the Company Purchases Assets are something which give a future benefit to the company o Non current receivables o Investments o Property and equipment including the contra assets of accumulated depreciation What are intangible assets o Franchise rights o Goodwill o Trademarks o Patents and Copy rights o Cash surrender value of officers life insurance Where does cash flow money come from The bulk of positive cash flow stems from cash earned from operations which is a good sign for investors Operating Cash Flow Investing Cash Flow Financing Cash Flow What are the difference between stocks and mutual funds Mutual funds are a collection of stocks bundled into a group For example there might be 100 stocks in a mutual fund What is the advantage of a mutual fund over a stock Mutual funds are less risky than individual stocks Know formulas and how to calculate them Total Sales revenues Total Expenses Profit Revenues Avg Rate X Volume o Ex 100 per room X 50 rooms 5 000 in revenue Profit Margin Cost of Goods Sold Profit Sales Inventory Cost of Goods Sold Ratio Labor Costs Covers per hour Covers per day Cost of Goods Sold Sales Variable Labor Fixed Labor Sales Total Covers Number of Operating Hours Total Covers Number of Days in Operation Beginning Inventory Inventory Purchases Ending Covers per server Seat Turnover Sales Mix Average Daily Rate Occupancy Rate Inventory Turnover Breakeven Return on Equity Current Ratio Debt Ratio Total Covers Total Servers Total Covers Number of Seats Sales of Item A Total Sales Room Revenue Rooms Sold Rooms Sold Rooms Available Cost of Inventory Sold Average Inventory Fixed Costs Sales price Variable Costs Net Profit Total Member s Equity Current Liabilities Current Assets Liabilities Assets