HM 316 Lecture Notes - Lecture 14: Accrual, Matching Principle, Income Statement

• School: JMU
• Department: Hospitality Management
• Course: HM 316
• Professor: William Frye

Document Summary

Benefits of finances: ability to move from tactical to strategic, ability to evaluate club critically, understand the business, form relationships with finance, ability to use numbers/finance tools to make/analyze decisions. Balance sheet :a statement of what the business owns/what it owes at a particular point in time. What"s left= things you own - things you owe. Assets: current assets -can be converted to cash quickly, cash, ar, inventory, accruals/ prepaid, other- fixed assets, accumulated deprec. , notes rec, other deposits/assets. Liabilities: current: ap, accrual expenses, line of credit, deferred rev. Equity: member certificates, retained earnings, restricted, unrestricted. Financial ratios: liquidity ratios, solvency ratios, debt-equity ratio= total liabilities/total member equity (net assets, time interest earned, profitability ratios, activity ratios. Inv: asset turnover, operating ratios, avg food service check= food rev/ covers served, cofs %= cofs/ food sales, cost of labor %= cost of labor/ department rev.