1.What is the average collection period for a hotel that generated total revenue of $22,950,781 with accounts receivable representing 9.6% of revenue in 2008? In 2007 the hotel achieved total revenue of $24,098,320 with accounts receivable comprising 10.2% of revenue.
2. Compute the debt-equity ratio for a hotel over a three-year period, and indicate whether the ratio is improving or declining in terms of the owners' ability to meet long-term obligations. The owners' equity was $517,300 in 2006, $455,000 in 2005 and $450,000 in 2004. Total liabilities for the same period were $659,000, $610,000, and $600,000 respectively.