VERTICAL ANALYSIS

GOLDEN TRADERS HOTEL

COMPARATIVE INCOME STATEMENT (CONDENSED)
FOR THE YEARS ENDED DECEMBER 31 , 2011 AND 2010
(in thousands )
2011 2010
Net Sales 735,000 100.0% 525,000 100.0%
Cost of goods sold 441,000 60.0% 341,250 65.0%
Gross profit from sales 294,000 40.0% 183,750 35.0%
Operating expenses
Selling Expenses 108,040 14.7% 52,080 9.9%
Administrative Expenses 93,200 12.7% 47,570 9.1%
Interest Expense 2,300 0.3% 3,330 0.6%
Total Expenses 203,540 27.7% 102,980 19.6%
Income before Income taxes 90,460 12.3% 80,770 15.4%
Provision for Income taxes 31,660 4.3% 28,270 5.4%
NET INCOME 58,800 8.0% 52,500 10.0%
HORIZONTAL ANALYSIS

GOLDEN TRADERS HOTEL

COMPARATIVE BALANCE SHEET ( CONDENSED )
DECEMBER 31 , 2011 AND 2010
( in thousands )
INCREASE(DECREASE)
2011 2010 AMOUNT %
ASSETS
Current Assets :
Cash and cash equivalents 91,000 64,750 26,250 41
Accounts Receivable , net 105,000 63,000 42,000 67
Merchandise Inventory 98,000 82,600 15,400 19
Prepaid expenses 10,500 8,400 2,100 25
Total Current Assets 304,500 218,750 85,750 39

Non-current Assets
Property , Plant and Equipment ,net 492,800 463,750 29,050 6
Other Assets 28,000 31,500 (3,500) (11)
Total Non-current assets 520,800 495,250 25,550 5

TOTAL ASSETS 825,300 714,000 111,300 16

LIABILITIES AND STOCKHOLDERS' EQUITY

LIABILITIES
Current liabilities
Accounts payable 91,200 79,300 11,900 15
Notes Payable 10,300 8,200 2,100 26
Total Current Liabilities 101,500 87,500 14,000 16
Non-current Liabilities
Bonds Payable 175,000 192,500 (17,500) (9)
TOTAL LIABILITIES 276,500 280,000 (3,500) (1)

STOCKHOLDERS' EQUITY
Ordinary shares 390,000 320,000 70,000 22
Retained Earnings 158,800 114,000 44,800 39
TOTAL STOCKHOLDERS'EQUITY 548,800 434,000 114,800 26

TOTAL LIABILITIES AND STOCKHOLDERS'

EQUITY 825,300 714,000 111,300 16
 2011 2010
LIQUIDITY
CURRENT RATIO
Total Current Assets 304500 218750
Total Current Liabilities 101500 87500
Current ratio ( CA/CL) 3:01 2.5:1

QUICK/ACID TEST RATIO

Quick assets
Cash and cash equivalents 91000 64750
Accounts Receivable,net 105000 63000
Total quick assets 196000 127750
Total Current Liabilities 101500 87500
Quick Ratio (QA/CL) 1.9 : 1 1.5 :1

RECEIVABLE TURNOVER
Net Sales 735000 525000
Receivable,net
Beginning of the year 63000 59500
End of the year 105000 63000
Total 168000 122500
Divided by 2 2
Average receivable 84000 61250
Turn-over ratio (NS/AR) 8.8 8.6

COLLECTION PERIOD
Days in a year 365 365
AR turn-over ratio 8.8 8.6
Collection Period (365/TR) 41 days 42 days

INVENTORY TURNOVER RATIO

 Cost of Goods sold (CS) 441000 341250
Merchandise Inventory
Beg. Of year 82600 82250
End of year 98000 82600
Total 180600 164850
Divided by : 2 2
Average Inventory 90300 82425
Turnover Ratio (CS/AI) 4.9 4.1

DAYS SUPPLY IN INVENTORY

Days in a year 365 365
Mdse. Inventory Turnover(TR) 4.9 4.1
Days supply in inventory(365/TR) 75 days 89 days

OPERATING CYCLE
Days' supply in Inventory (DS) 75 89
Collection Period (CP) 41 42
Operating cycle(DS+CP) 116 days 131 days

PROFITABILITY
PROFIT MARGIN
Net income(NI) 58,800 52,500
Net sales (NS) 735,000 525,000
Profit Margin (NI/NS) 8% 10%

ASSET TURNOVER
Sales (NS) 735,000 525,000
Assets
Beg. Of year 714,000 700,500
End of the year 825,300 714,000
total ### ###
divided by 2 2 2
 Average assets (AA) 769,650 707,250
Asset turnover (NS/AA) . 95 times .74 times

RETURN ON ASSETS
Net Income (NI) 58,800 52,500
Average total assets (AA) 769,650 707,250
Return on assets (NI/AA) 7.60% 7.40%

RETURN ON EQUITY
Net Income (NI) 58,800 52,500
Stockholders' Equity
Beg. Of the year 434,000 385,500
End of the year 548,800 434,000
Total 982,800 819,500
Divided by 2 /2 /2
Average stockholders equity 491,400 409,750
Return on Equity (NI/ASHE) 11.90% 12.80%

EARNINGS PER SHARE

Net Income (NI) 58,800 52,500
Outstanding shares (OS) 350 300
Earnings per share 168 175

DEBT/EQUITY RATIO
Total liabilities (TL) 276,500 280,000
Total Stockholders' Equity(TSHE) 548,800 434,000
Debt to Equity Ratio ( TL/SHE) .5 : 1 .64 : 1

INTEREST COVERAGE RATIO

Net Income before Income taxes(NIBT) 90,460 80,770
Interest expense (IE) 2,300 3,330
Total NIBT and IE 92,760 84,100
 Interest coverage ratio(TNIBT & IE/IE 40.3 times 25.5 times

MARKET RISK
PRICE/EARNINGS RATIO
Market price per share (MPS) 500 750
Earnings per share (EPS) 168 175
Price /Earnings ratio (MPS/EPS) 3 times 4.3 times

DIVIDEND YIELD
Dividends per share (DPS) 40 13.33
Market price per share (MPS) 500 750
Dividends Yield (DPS/MPS) 8% 1.80%

MARKET RISK