4. Terry Ray manages a large hotel in an urban Midwestern city. He wants to use vertical analysis and a slightly modified version of the USALI income statement (P&L) for his property to assess its financial performance last year. Complete the spreadsheet to help him evaluate his effectiveness as a manager a. The owner gave Terry a goal of 65% for total operated department income. Did Terry perform better or worse than this goal? By how much? 107 Test Your Skills b. The owner alve Terry a goal of 22 total distributed operating expenses. Did Terry perform better or wone C. The owner gave her a goal of 20 net income for the year Did Temy perform better or worse than this goal? d. If you answered that Terry did not meet his goal in Question, what could he do to get his PAL in line with the Terry's P&L 100.00 5,100.550 3,000,000 585,600 229,400 1.400.000 386.100 595,200 96,200 TOTAL REVENUE Rooms-Revenue Payroll and Related Expenses Other Expenses Department Income Food Revenue Cost of Sales Payroll and Related Expenses Other Expenses Department Income Beverage--Revenue Cost of Sales Payroll and Related Expenses Other Expense Department Income Telecommunications-Revenue Cost of Sales Payroll and Related Expenses Other Expenses 560,000 81,510 96,590 36,400 14,000 30.550 9.750 5,200 105,000 14.300 32 300 11.700 Department Income Other Operated Departments -Revenue Cost of Sales Payroll and Related Expense Other Expenses Department Income Rentals and Other Income-Revenue Cost of Sales Payroll and Related Expenses Other Expenses Department Income Total Operated Department Income UNDISTRIBUTED OPERATING EXPENSES Administrative and General Information Systems 21,350 2,860 8,840 1,950 245,050 51,350 Terry's P&L (Continued) 105,300 50,050 0 Human Resources Security Franchise Fees Transportation Marketing Property Operation and Maintenance Utility Costs Total Undistributed Operating Expenses GROSS OPERATING PROFIT Rent, Property Taxes, and Insurance Depreciation and Amortization NET OPERATING INCOME 60,450 280,280 216.125 193,375 317,850 227,500 Interest 136,500 INCOME BEFORE INCOME TAXES Income Taxes 491,528 NET INCOME