Nilam Patel is the primary stockholder in two hotelcorporations. One corporation owns a 90?room economy propertylocated in the suburbs of a large western town. The othercorporation is a 350?room full?service convention hotel in thedowntown city center for which Nilam has employed a managementcompany to operate the property. Nilam is preparing balance sheetsfor both properties using a common size format. Complete the twobalance sheets. Then answer the questions that follow.

December 31		Common Size
	90?Room Property	350?Room Property	90?Room Property (%)	350?Room Property (%)
ASSETS
Current Assets
Cash
Cash inHouse Banks		$86,000
Cash inDemand Deposits	85,000	330,250
TotalCash	103,500	416,250
Short?Term Investments	56,000	165,000
Receivables
AccountsReceivable	150,000	327,150
NotesReceivable	35,000	136,250
Other	750	30,800
TotalReceivables	185,750	494,200
LessAllowance for Doubtful Accounts	19,250
NetReceivables	166,500	431,900	1.4	1.1
Due fromManagement Company	—	50,000	0.0	0.1
FoodInventories	15,125	69,750	0.1	0.2
BeverageInventories	—	42,550	0.0	0.1
Gift ShopInventories	300	6,950	0.0	0.0
SuppliesInventories	6,550	13,550	0.1	0.0
PrepaidExpenses	56,000	120,100	0.5	0.3
DeferredIncome Taxes—Current	48,000	135,000	0.4	0.3
TotalCurrent Assets
Investments	72,500	274,150	0.6	0.7
Property and Equipment
Land	2,000,000	8,450,000
Building	6,500,000	18,500,000
Leaseholds and Leaseholdimprovements	2,037,250	5,850,000
Furnishings and Equipment	1,288,000	3,105,000
TotalProperty and Equipment	11,825,250	35,905,000
Less Accumulated Depreciation andAmortization	575,000	2,575,000
NetProperty and Equipment	11,250,250	38,480,000
Other Assets
Intangible Assets	—	75,000	0.0	0.2
Deferred Income Taxes—Non?current	66,000	158,000	0.6	0.4
Operating Equipment	35,100	111,000	0.3	0.3
Restricted Cash	25,000	95,000	0.2	0.2
TotalOther Assets	126,100	439,000	1.1	1.1
TOTAL ASSETS			100.0	100.0
LIABILITIES AND OWNERS' EQUITY
Current Liabilities
Notes Payable
Banks	17,500	116,250	0.1	0.3
Others	8,000	17,500	0.1	0.0
TotalNotes Payable	25,500	133,750	0.2	0.3
Accounts Payable	2,500	125,100
Accrued Expenses	45,000	42,500
Advance Deposits	500	42,250
Income Taxes Payable	15,000	78,000
Deferred Income Taxes—Current	40,000	235,000
Current Maturities of Long?TermDebt	420,000
Other	50,000	58,000
TotalCurrent Liabilities	598,500	2,399,600	5.0	5.9
Long?term Debt, Net of Current Maturities
Mortgage Note		24,383,030
Obligations Under Capital Leases	18,000	385,000	0.2	0.9
TotalLong?Term Liabilities	6,868,000
Owners' Equity
Common Stock	500,000	2,000,000
Paid in Capital		8,711,500
Retained Earnings	879,325	2,765,070
TotalOwners' Equity	4,434,325	13,476,570
TOTAL LIABILITIES AND OWNERS' EQUITY			100	100

1. What was the amount of cash in the 90?room property's Cash inHouse Banks account at year end?
2. What is the amount of Allowance for Doubtful Accounts in the350?room property? Do you think it is excessive? Explain youranswer?
3. What would explain the lack of a beverage inventory value inthe 90?room hotel?
4. What was the dollar amount of Total Assets in the 90?roomhotel?
5. What was the dollar amount of Total Assets in the 350?roomhotel?
6. What was the dollar amount of Current Maturities of Long?TermDebt in the 350?room property? Why is that amount likely so muchhigher than for the 90?room property?
7. What was the dollar amount of Paid in Capital for the 90?roomproperty?
8. What is the Owners' Equity percentage of Total Assets in the90?room property? What is it in the 350?room property?