Operational Finance for Hospitality and Tourism

Operational Finance For
Hospitality and Tourism

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Finance is the process for raising funds for the business which helps it for running its
activities which gives higher profitability (Filimonau and Delysia, 2019). The company's has use
for financial statements for managing its activity. The company which uses financial statements
it gives information about business transactions. Financial statements includes cash flow
statements, balance sheet, income statements etc. These financial statements helps company's for
managing its activities for higher profitability. This report is about e-hotel named Park Grand
London Paddington which provides its services online. This report includes topics which are
financial statements for the business.
MAIN BODY
Cash flow Statement
Category
For six
months
Cash on Hand 580500
Cash Receipts
Cash Sales 2000000
Collections from credit
accounts
Cash from Loans or
other outside sources 50000
TOTAL CASH
RECEIPTS 2050000
Total cash available 2630500
Cash Paid Out
Purchases
Gross Wages 120000
Outside Services 70000

Supplies 40000
Repairs & Maintenance 46000
Advertising 20000
Car, Delivery, Travel 100000
Accounting Services 50000
Legal Services 10000
Rent 50000
Telephone 5000
Utilities 70000
Insurance 5000
Taxes (real estate, etc.) 3000
Income Taxes Paid 15000
Interest 100000
Other Expenses
SUBTOTAL 704000
Loan Principal
Payment 500000
Capital Purchase
Other Start Up Costs 150000
Reserve and/or escrow
Other Withdrawals 200000
Total Cash Paid Out 850000
Cash Position 1076500
Interpretation- The Cash Flow Statement of Park Grand London Paddington displays
the liquidity position of the company (Franco and et.al., 2020). The Total Cash Available with
the hotel is 2630500. The Total Cash Paid Out is 850000. Thus the total actual Cash Position is
1076500. This displays that the actual liquidity position of the company is quite good and the
overall level of liquidity has been maintained in a proper way within the hotel.