Final answer:
Cecil, the general manager of a hotel, is examining a balance sheet from the end of the previous fiscal year to prove to creditors that the hotel can meet its financial obligations. The current date is July 14, suggesting that Cecil is evaluating the hotel's financial position six and a half months after the fiscal year-end.
Step-by-step explanation:
In this scenario, Cecil, the general manager of a hotel, is looking at a balance sheet from the end of the previous fiscal year, which ended on December 31. He wants to gather information to prove to creditors that the hotel can pay its debts. Since the current date is July 14, we can infer that Cecil is analyzing the financial position of the hotel six and a half months after the fiscal year-end.
During these six and a half months, the hotel would have completed another quarter and a half, which is equivalent to three fiscal months. Analyzing the hotel's financial position at this point can help Cecil demonstrate to creditors the hotel's ability to pay its debts even after considering ongoing expenses and potential changes in revenue.