Given the facts in Problems 13.4 and 13.5 and the following additional information, prepare the pro forma income statements for each of the first five years:

Rooms operating costs average 60% of total room sales revenue. Indirect expenses will be $40,000 in Year 1, and will increase by $4,000 a year for each of the next 4 years. The pre-opening interest and other expenses total $100,000 and will be amortized equally over each of the first 5 years. Income tax, if any, will be 25% of earnings before income tax. Note, however, that if there are any losses, they may be carried forward and deducted from earnings before income tax, before the 25% tax rate is applied. (Round all calculated figures to the nearest $1,000.)LO1

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Year Average Room Rate Occupancy (%) 12345 1 $30.00 70% 2 $30.00 75% 3 $33.00 75% $35.00 75% 5 $35.00 80%