Summary of the Mid-Term Exam! Perfect for studying and for bringing to the exam. Gives a step for step guide to do certain exercises, such as making a Cash Flow. Includes a summary and explanation of every Ratio that you will need for the exam!
Making
Financial
Decisions
Mid Term Exam
Joris Wechsler
2020
,LU 1: Recap of CBV and Operating Results Analysis
USALI = Uniform System of Accounts for the Lodging Industry
Balance Sheet
= Financial statement reflecting the financial position of the operation, at a given point in
time. Shows a firm’s assets, and claims to it’s assets (liabilities and owner’s equity).
ASSETS = LIABILITIES + EQUITY
Assets
Current Assets = can be converted to cash or used in operations within one year.
Cash
Accounts Receivable
Inventories
Operating Equipment (linen, china, glassware, silver, uniforms), a current asset if the
useful life is less than one year, otherwise specified under “other assets”
Prepaid expenses
Marketable securities (short term investments such as T-bills)
Non-current Assts = Long-term investments where the full value cannot be realized within
one year
Investments
Property
Land
Equipment
Trademarks
Goodwill
Liabilities
Current Liabilites = Obligations that must be paid within one year, usually by current assets
{ Accounts Payable
{ Advance Received (e.g. Advance deposits)
{ Current Maturities of long-term debt
{ Dividends payable
{ Income taxes payable
Long-term liabilities = Oblications that can be paid beyond the next 12 months
{ Notes payable
{ Mortgages payable
{ Bonds payable
, Owner’s Equity
Reflects the owner’s interest in the operation’s assets
Ë Common Stock
Ë Additional paid-in Capital
Ë Retained Earnings
Ë Treasury Stock
The Income Statement
= Report the success of a company’s operations over a period of time
U Shows revenues and expenses, with a subsequent profit/loss
U The profit/loss is then transferred to the owners equity (owner pays for what is
lost/won)
Basic Format of Income Statement
Revenue Operated Departments
- Cost of Sales
= Gross Profit
- Operating Expenses
= Income before fixed charges
- Fixed Charges
= Income before taxes
- Corporate Income Taxes
= NET INCOME
EBITDA = Earnings before interest, taxes, depreciation and amortization, shows the
effectiveness & efficiency of an operation (ITDA are fixed and out of control of operation)
Net. Book Value = Acquisition Cost – Accumulated Depreciation
Gain/loss on sale of assets = Selling price – Net book value
Cost of Sales Formula
Beginning Food Inventory
+ Food inventory purchases
= Food available for sale
- Ending Food Inventory
= Cost of Food Sales
- Staff Meals
= Cost of Food Sold
Voordelen van het kopen van samenvattingen bij Stuvia op een rij:
Verzekerd van kwaliteit door reviews
Stuvia-klanten hebben meer dan 700.000 samenvattingen beoordeeld. Zo weet je zeker dat je de beste documenten koopt!
Snel en makkelijk kopen
Je betaalt supersnel en eenmalig met iDeal, creditcard of Stuvia-tegoed voor de samenvatting. Zonder lidmaatschap.
Focus op de essentie
Samenvattingen worden geschreven voor en door anderen. Daarom zijn de samenvattingen altijd betrouwbaar en actueel. Zo kom je snel tot de kern!
Veelgestelde vragen
Wat krijg ik als ik dit document koop?
Je krijgt een PDF, die direct beschikbaar is na je aankoop. Het gekochte document is altijd, overal en oneindig toegankelijk via je profiel.
Tevredenheidsgarantie: hoe werkt dat?
Onze tevredenheidsgarantie zorgt ervoor dat je altijd een studiedocument vindt dat goed bij je past. Je vult een formulier in en onze klantenservice regelt de rest.
Van wie koop ik deze samenvatting?
Stuvia is een marktplaats, je koop dit document dus niet van ons, maar van verkoper wechslerjoris. Stuvia faciliteert de betaling aan de verkoper.
Zit ik meteen vast aan een abonnement?
Nee, je koopt alleen deze samenvatting voor €6,49. Je zit daarna nergens aan vast.
