HFT 3431 Study Guide - Midterm Guide: Net Income, Income Statement, Earnings Before Interest And Taxes

• School: UCF
• Department: Hotel and Restaurant
• Course: HFT 3431
• Professor: Ji- Eun Lee

Document Summary

Balance sheet -> assets = liabilities + equity. Straight-line dep (cost residual)/ useful life = dep. Weighted av cost = total cost available. Asset value: interest expense for mortgage, bond, loan. Change = (new - old) in acc of f/s. Changes = (new - old)/ old in acc of f/s. Average check per guest = revenue / # of guests. Average cost per guest = cost / # of guests. Average income per guest = income / # of guests. Changes in am & % = (new - old)/ old = % Index trend = assign 100 to base period (new/old)*100 = rev index. Current dollars = historic dollars * (current period index) (historic period index) Activity (turnover) ratio: shows management"s effectiveness in using and controlling resources (= assets). Pro tability ratio: shows management ability to turn assets and revenue into pro t. Operating ratio: evaluate speci c aspects of operating activity. Ar turnover = ar rev/ av ar.