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    Financial Analysis and suggestions for Room division

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    Based on the "required" section in the word document i have attached, provide as much information as possible. I have also attached an excel spreadsheet with financial information. Thanks.

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    Solution Preview

    In financial analysis, we need qualitative information and try to read between the numbers. We have to ask all the right questions. Over the years, there are some ratios, which have become more popular and handy for rule of thumb analysis of financial statements. Our purpose in this note is not deride them but to advice the reader to use them properly to derive the correct results.
    Ratio analysis can also help us to check whether a business is doing better this year than it was last year; and it can tell us if our business is doing better or worse than other businesses doing and selling the same things. In other words it helps in inter firm and intra firm comparison.
    We can use ratio analysis to try to tell us whether the business

    1. Is profitable
    2. Has enough money to pay its bills
    3. Could be paying its employees higher wages
    4. Is paying its ...

    Solution Summary

    This provides financial analysis and suggestions for Room division (Hotel)