Compare the ratios of Hotels A&B as provided below:

                                    Hotel A                         Hotel B

Current ratio               1.5                                  2.2

Acid test ratio             1.3                                 0.9

Operating cash flow

to current liabilities    1.8                                  1.3

Inventory turnover    15.6                                12.3

Accounts receivable

Turnover                     8.3                                  6.1

Debt ratio                    0.48                                0.25

Number of time

Interest earned ratio     4.3                                  2.5

Profit margin              11.2%                             12.3%

Operating efficiency   25.4%                            18.3%

Return on equity         14.3%                            10.2%

Average daily rate      $50.5                              $58.4

REVPAR                     $40.4                              $37.9

Requirements:

a. Which hotel has better liquidity? Why?

b. Which hotel is more solvent? Why?

c. Which hotel is more profitable in terms of management performance. Why?

d. Which hotel has better room operation performance? Why?

e. Calculate the occupancy rates of Hotels A and B respectively.