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 Tuinover 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 S $ 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 S 3,659,800 $ $ 3,565,100 $ $ 3,305,800 $ $ 2,325,400 $ $ 12,856,100 5 3,700,800 $ 3,571,200 $ 3,316,400 $ 2,342,500 5 12,930,900 $ 3,741,800 $ 4,061,210 $ 4,142,434 3,577,300 $ 3,372,120 S 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 $ 10,392,876 Franchise Fees (Royalty) Management Fees $ $ 1,500,834 $ 258,228 5 1,553,805 $ 283,746 $ 1,585,013 $ 298,478 S 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 $ 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 $ 4,598,7395 1,287,647 S 3,311,092 $ 5,718,798 $ 680,000 $ 60,000 $ 4,978,798 $ 1,394,063 $ 3,584,734 S 4,982,048 621,000 $ 60,000 $ 4,301,048 5 1,204,293 $ 3,096,754 $ 5,286,489 609,000 60,000 4,617,489 1,292,897 3,324,592 letanbul Hall 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) 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 Turnover 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 30,016,687.5 7,585,300 1,412,800 2,278,000 41,292,787.5 31,076,100 7,615,900 1,455,700 2,210,000 42,357,700 31,700.250 7,566,000 1,459,400 2,280.900 43,006,550 32,064,885 7,436,820 1,667,570 2,437,760 43,607,035 33,009,322.5 7,659,924.6 1,734,272.8 2,559,648 44,963,167.9 11,492,600 7,831,900 504,600 19,829,100 11,558,800 7,897,800 512,000 19,968,600 11,633,700 7,898,500 519,400 20,051,600 13,523,900 8,086,560 588,130 22,198,590 13,794,378 8,329,156.8 611,655.2 22,735,190 21,463,687.5 22,389,100 22,954,950 21,408,445 22,227,977.9 DEPARTMENTAL EXPENSES Rooms Food & Beverage Other Operated Depts Total Departmental Expenses Total Departmental Profit UNDISTRIBUTED OPERATING EXPENSES Administrative & General Marketing Utility Costs Property Operations & Maintenance Total Undistributed Operating Expenses GROSS OPERATING PROFIT 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 3,577,300 3,327,000 2,359,600 13,005,700 4,061,210 3,372,120 1,843,700 2,192,320 11,469,350 4,142,434.2 3,473,283.6 1,917,448 2,301,936 11,835,101.8 8,607,587.5 9,458,200 9,949,250 9,939,095 10,392,876.1 1,500,834.375 258,227.625 1,553,805 283,746 1,585,012.5 298,477.5 1,603,244.25 298, 172.85 1,650,466.125 311,786.283 Franchise Fees (Royalty) Management Fees INCOME BEFORE FIXED CHARGES 6,848,525.5 7,620,649 8,065,760 8,037,677.9 8,430,623.692 Selected Fixed Charges Property Taxes Insurance Reserve For Capital Replacement 1,312,900 447,900 430,379.375 1,353,400 455,600 472,910 1,394,000 455,500 497,462.5 1,444,300 483,480 1,127,850 1.473,186 497.984.4 1,172,964 EBITDA Depreciation Interest Expense Income Before Income Tax Income Tax Net Income 4,657,346.125 680,000 60,000 3,917,346.125 1,096,856.915 2,820,489.21 5,338,739 680,000 60,000 4,598,739 1,287,646.92 3,311,092.08 5,718,797.5 680,000 60,000 4,978,797.5 1,394,063.3 3,584,734.2 4,982,047.9 621,000 60,000 4,301,047.9 1,204,293.412 3,096,754.488 5,286,489.292 609,000 60,000 4,617,489.292 1,292,897.002 3,324,592.29 2018 2019 Istanbul Hotel Balance Sheets December 31, 2017, 2018 and 2019 2017 Assets Current Assets Cash $30,600 Marketable Securities $83,200 Net Receivables S161,120 Prepaid Expenses SO Inventories $6,480 Total Current Assets $281,400 $37,800 $42.000 $81,840 $93,000 S118,680 $138,000 S187,115 S188,599 $4,000 $5,000 $242,320 $278,000 Property and Equipment Land Building Furnishings and Equipment Less Accumulated Depreciation Net Property and Equipment $500,000 S470,000 $143,595 S182,090 $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 S24,380 $131,640 $96,300 $107.000 $13,200 $15,000 $32,680 $38,000 $142,180 $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 $188,599 $540,000 $600,000 $155,936 $177,200 $884,535 $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