managing financial decisions hoge hotelschool den haag samenvatting summary 2025

managing financial decisions hoge hotelschool den haag samenvatting summary 2025 1 / 4

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managing financial decisions hoge hotelschool den haag samenvatting summary 2025

Lecture 1: Analyzing Operating Results

Learning Goals USALI = Uniform System of Accounts for the Lodging Industry Balance Sheet (Statement of Financial Position) = Financial statement reflecting the financial position of the hospitality operation at a given date. Reflects a balance between an organization's assets and claims to its assets called liabilities and owner´s equity.Useful for conveying financial information to creditors and investors.-The Account Format lists the asset accounts on the left side of the page and the liability and owner's equity accounts on the right side.-The Report Format shows assets first, followed by liabilities and owner's equity.Assets = Liabilities + Equity  Assets must always equal liabilities and equity, as they are covered by creditor/owner investments Assets Current Assets = can be converted to cash or used in operations within one year or in a normal operating cycle.-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)  Liquidity = measures the operation's ability to convert assets to cash Non-current Assets = company long-term investments where the full value will not be realized within the accounting year. Examples of noncurrent assets include investments, property, land, equipment and intangible assets, such as trademarks and goodwill.Current Liabilities = obligations that are expected to be satisfied either by using current assets or by creating other current liabilities within one year or a normal operating cycle. Money owed that must be paid within a year -Payables -Amounts received in advance (such as advance deposits) -Obligations to be paid in the current period (e.g. current maturities of long-term debt) -Dividends payable -Income taxes payable Long-Term Liabilities = obligations at the balance sheet date that are expected to be paid beyond the next 12 months; notes payable, mortgages payable, bonds payable etc.

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managing financial decisions hoge hotelschool den haag samenvatting summary 2025 Owner's Equity = reflects the owner's interest in the operation's assets. Include common stock, additional paid-in capital, retained earnings, treasury stock etc.Balance Sheet Analysis Horizontal Analysis (comparative statements) = comparing two balance sheets – the current balance sheet and the balance sheet of the previous period.-Simplest approach to analysis and is essential to the fair reporting of the financial information.-Both absolute (change in units) and relative (% change) comparisons are presented.Vertical Analysis (common-size statements) = analysis of individual financial statements by reducing financial information to percentages (income statement: as a % of total revenue, balance sheet: as a % of total assets) Base-year comparison = an analysis that uses a base period as a starting point (set at 100%) and comparing all subsequent periods with the base

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