2018 2019 Liquidity Ratios Current Ratio Quick Ratio/Acid-test Ratio Solvency Ratios Debt Ratio Debt to Equity Ratio Number of times interest earned Profitability Ratios Profit Margin Operating Efficiency Ratio (GOP Margin) Return on Assets Return on Owners' Eq (ROE)/Return on Investment (ROI) Earnings Per Share (EPS) Price/Earnings Ratio (P/E Ratio) Activity Ratios Account Receivables Turnover Average Collection Period Inventory Turnover Ratio Purchasing Cycle Fixed Asset Tunover Number of Rooms Available ADR OCC RevPAR 450 215 85% 183 450 220 86% 189 450 225 86 193 450 227 86% 195 450 231 87% 201 Istanbul Hotel Income Statement REVENUE Rooms Food & Beverage Other Operated Depts Misc Income Total Revenue $ 30,016,688 $ 31,076,100 $ $ 7,585,300 $ 7,615,900 $ $ 1,412,800 $ 1,455,700 $ $ 2,278,000 $ 2,210,000 $ $ 41,292,788 $ 42,357,700 $ 31,700,250 $ 32,064,885 $ 33,009,323 7,566,000 $ 7,436,820 $ 7,659,925 1,459,400 $ 1,667,570 S 1,734,273 2,280,900 $ 2,437,760 $ 2,559,648 43,006,550 $ 43,607,035 $ 44,963,168 DEPARTMENTAL EXPENSES Rooms Food & Beverage Other Operated Depts Total Departmental Expenses $ 11,492,600 $ 11,558,800 $ $ 7,831,900 $ 7,897,800 $ $ 504,600 $ 512,000 $ $ 19,829,100 $ 19,968,600 $ 11,633,700 $ 13,523,900 $ 13,794,378 7,898,500 $ 8,086,560 $ 8,329,157 519,400 $ 588,130 $ 611,655 20,051,600 $ 22,198,590 $ 22,735,190 Total Departmental Profit $ 21,463,688 $ 22,389,100 $ 22,954,950 $ 21,408,445 $ 22,227,978 UNDISTRIBUTED OPERATING EXPENSES Administrative & General Marketing Utility Costs Property Operations & Maintenance Total Undistributed Operating Expenses $ $ $ $ $ 3,659,800 $ 3,700,800 $ 3,565,100 $ 3,571,200 $ 3,305,800 $ 3,316,400 $ 2,325,400 $ 2,342,500 $ 12,856,100 $ 12,930,900 $ 3,741,800 $ 4,061,210 $ 4,142,434 3,577,300 $ 3,372,120 $ 3,473,284 3,327,000 $ 1,843,700 $ 1,917,448 2,359,600 $ 2,192,320 $ 2,301,936 13,005,700 $ 11,469,350 $ 11,835,102 GROSS OPERATING PROFIT $ 8,607,588 $ 9,458,200 $ 9,949,250 $ 9,939,095 $ 10,392,876 Franchise Fees (Royalty) Management Fees $ $ 1,500,834 $ 258,228 $ 1,553,805 $ 283,746 $ 1,585,013 $ 298,478 $ 1,603,244 $ 298,173 $ 1,650,466 311,786 INCOME BEFORE FIXED CHARGES $ 6,848,526 $ 7,620,649 $ 8,065,760 $ 8,037,678 $ 8,430,624 Selected Fixed Charges Property Taxes Insurance Reserve For Capital Replacement $ $ $ 1,312,900 $ 447,900 $ 430,379 $ 1,353,400 $ 455,600 $ 472,910 $ 1,394,000 $ 455,500 $ 497,463 $ 1,444,300 $ 483,480 $ 1,127,850 $ 1,473,186 497,984 1,172,964 EBITDA Depreciation Interest Expense Income Before Income Tax Income Tax Net Income $ $ $ $ $ $ 4,657,346 $ 680,000 $ 60,000 $ 3,917,346 $ 1,096,857 $ 2,820,489 $ 5,338,739 $ 680,000 $ 60,000 $ 4,598,739 $ 1,287,647 $ 3,311,092 $ 5,718,798 $ 680,000 $ 60,000 $ 4,978,798 $ 1,394,063 $ 3,584,734 $ 4,982,048 $ 621,000 $ 60,000 $ 4,301,048 S 1,204,293 $ 3,096,754 $ 5,286,489 609,000 60,000 4,617,489 1,292,897 3,324,592 2017 2018 2019 Istanbul Hotel Balance Sheets December 31, 2017, 2018 and Assets Current Assets Cash Marketable Securities Net Receivables Prepaid Expenses Inventories Total Current Assets $30,600 $83,200 $161,120 $0 $6,480 $281,400 $37,800 $81,840 $118,680 $187,115 $4,000 $242,320 $42,000 $93,000 $138,000 $188,599 $5,000 $278,000 Property and Equipment Land Building Furnishings and Equipment Less Accumulated Depreciation Net Property and Equipment $500,000 $470,000 $143,595 $182,090 $931,505 $500,000 $500,000 $480,000 $590,000 $100,000 $110,000 $176,000 $200,000 $904,000 $1,000,000 Total Assets $1,212,905 $1,333,435 $1,466,599 Liabilities and Owners' Equity Current Liabilities Accounts Payable Notes Payable Accrued Wages Total Current Liabilities $45,900 $61,360 $24,380 $131,640 $96,300 $13,200 $32,680 $142,180 $107,000 $15,000 $38,000 $160,000 Long-Term Liabilities Long-Term Debt Total Liabilities $140,964 $272,604 $306,720 $448,900 $340,800 $500,800 + Owners' Equity Common Stock Paid-in Capital in Excess of Par Retained Earnings Total Owners' Equity $188,599 $540,000 $211,702 $940,301 $188,599 $540,000 $155,936 $884,535 $188,599 $600,000 $177,200 $965,799 Total Liabilities and Owner's Equity $1,212,905 $1,333,435 $1,466,599 Shares Outstanding Market Price per Share $ 300,000 250 300,000 280 300,000 320 Fill in Ratios sheet ( 2nd picture is Income statement. 3rd is Balance sheet) D E F G H Number of Rooms Available ADR OCC RevPAR 2015 450 215 85% 183 2016 450 220 86% 189 2017 450 225 86 193 2018 450 227 86% 195 2019 450 231 87% 201 Istanbul Hotel Income Statement REVENUE Rooms Food & Beverage Other Operated Depts Misc Income Total Revenue $ 30,016,688 $ 31,076,100 $ $ 7,585,300 $ 7,615,900 $ $ 1,412,800 $ 1,455,700 $ $ 2,278,000 $ 2,210,000 $ $ 41,292,788 $ 42,357,700 $ 31,700,250 $ 32,064,885 $ 33,009,323 7,566,000 $ 7,436,820 $ 7,659,925 1,459,400 $ 1,667,570 $ 1,734,273 2,280,900 $ 2,437,760 $ 2,559,648 43,006,550 $ 43,607,035 $ 44,963,168 DEPARTMENTAL EXPENSES Rooms Food & Beverage Other Operated Depts Total Departmental Expenses $ 11,492,600 $ 11,558,800 $ $ 7,831,900 $ 7,897,800 $ $ 504,600 $ 512,000 $ $ 19,829,100 $ 19,968,600 $ 11,633,700 $ 13,523,900 $ 13,794,378 7,898,500 $ 8,086,560 $ 8,329,157 519,400 $ 588,130 $ 611,655 20,051,600 $ 22,198,590 $ 22,735,190 Total Departmental Profit $ 21,463,688 $ 22,389,100 $ 22,954,950 $ 21,408,445 $ 22,227,978 UNDISTRIBUTED OPERATING EXPENSES Administrative & General Marketing Utility Costs Property Operations & Maintenance Total Undistributed Operating Expenses $ 3,659,800 $ $ 3,565,100 $ $ 3,305,800 $ $ 2,325,400 $ $ 12,856,100 $ 3,700,800 $ 3,571,200 $ 3,316,400 $ 2,342,500 $ 12,930,900 $ 3,741,800 $ 4,061,210 $ 4,142,434 3,577,300 $ 3,372,120 $ 3,473,284 3,327,000 $ 1,843,700 $ 1,917,448 2,359,600 $ 2,192,320 S 2,301,936 13,005,700 $ 11,469,350 $ 11,835,102 GROSS OPERATING PROFIT $ 8,607,588 $ 9,458,200 $ 9,949,250 $ 9,939,095 S 10,392,876 Franchise Fees (Royalty) Management Fees $ $ 1,500,834 $ 258,228 5 1,553,805 $ 283,746 $ 1,585,013 $ 298,478 $ 1,603,244 S 298,173 $ 1,650,466 311,786 INCOME BEFORE FIXED CHARGES $ 6,848,526 $ 7,620,649 $ 8,065,760 $ 8,037,678 $ 8,430,624 Selected Fixed Charges Property Taxes Insurance Reserve For Capital Replacement $ $ $ 1,312,900 $ 447,900 S 430,379 $ 1,353,400 $ 455,600 $ 472,910 $ 1,394,000 $ 455,500 $ 497,463 $ 1,444,300 $ 483,480 S 1,127,850 $ 1,473,186 497.984 1,172,964 EBITDA Depreciation Interest Expense Income Before Income Tax Income Tax Net Income $ $ $ $ $ $ 4,657,346 5 680,000 $ 60,000 $ 3,917,346 $ 1,096,857 $ 2,820,489 $ 5,338,739 $ 680,000 $ 60,000 $ 4,598,739 $ 1,287,647 S 3,311,092 $ 5,718,798 $ 680,000 $ 60,000 $ 4,978,798 $ 1,394,063 $ 3,584,734 $ 4,982,048 $ 621,000 $ 60,000 $ 4,301,048 S 1,204,293 $ 3,096,754 $ 5,286,489 609,000 60,000 4,617,489 1,292,897 3,324,592 letanbul Haball