HTA 402 Midterm: Solutions Sample 2 Mid term Win2011.pdf
9 Dec 2013
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The owners of the walton inn, a small lodging operation, has asked for your help in understanding the balance sheets for 2006 and 2007. They have presented you with the condensed balance sheets as follows: 1 what amount of existing debt must be paid during 2008. Assuming the only changes to the mortgage account was payment, how much was paid down in 2007. 3 what is the total working capital at the end of 2007. Income statement for the month ended december 31, 2007. *all departmental expenses are assumed to be variable. Be sure to use the information below to quantify your decision. (note: no marks are awarded with unsubstantiated analysis. ) Lease out the space to the management company identified below. Additional information: (i) closing the lounge would reduce monthly overhead costs by ,000, while leasing the. Lounge space would reduce monthly overhead by ,000. (iii) (ii) the space can be leased for 12% of sales.
