Acorporation reports the following year-end balance sheet data. the company's debt ratio equals: cash $ 40,000 current liabilities $ 75,000 accounts receivable 55,000 long-term liabilities 35,000 inventory 60,000 common stock 100,000 equipment 145,000 retained earnings 90,000 total assets $ 300,000 total liabilities and equity $ 300,000 0.58 1.27 2.07 0.37 0.63

Suppose a holiday inn hotel has annual fixed costs applicable to its rooms of $1.2 million for its 300-room hotel, average daily room rents of $50, and average variable costs of $10 for each room rented. it operates 365 days per year. the amount of operating income on rooms, assuming an occupancy* rate of 80% for the year, that will be generated for the entire year is *occupancy = % of rooms rented