Question
ABC International Hotel is a 10 story, 350 room hotel situated in Adelaide. The ABC International Hotel's business results for one day in February were:
ABC International Hotel is a 10 story, 350 room hotel situated in Adelaide.
The ABC International Hotel's business results for one day in February were:
Budget Information
F and B revenue budgeted at $12000
Food & Beverage dept. total department costs are 35% of F and B revenue
Room Occupancy budgeted at 95%
ADR set at $140
Rooms Division total department costs are 60% of Room revenue
EBIT is budgeted at 30.02% of total revenue
The budgeted Other (Operating expenses) is 15% of total revenue,
Income Tax paid at 30% of earnings before tax
Actual Results Rooms
- Achieved RevPAR of $110.00
- Rooms Division COGS were 48% of Room revenue
Actual results F and B
- Food & Beverage revenue is $10 000
- Food & Beverage dept. COGS were 30% of F and B revenue
- Actual Other (Operating expenses) are $9250.
Other information
- Loan Interest actually paid $2 000
- Total owners' equity $100 000
- Total Assets $148 000 Including: Current Assets $65 000 and Non-Current Assets $83 000
- Total liabilities $48 000 Including: Current liabilities $26 000 and non-Current liabilities $22 000
Rounding instructions
- All occupied rooms are rounded DOWN
- All percentage calculations to be rounded to two decimal places
- All dollar figures round to whole dollars
Complete the missing information
Income Statement | ||||||
Actual | Budget | Variance | ||||
$ | % | $ | % | $ | % | |
Room revenue |
| 100% |
| 100% |
| |
Cost of Goods Sold |
|
| 60% |
|
| |
Gross Profit |
|
|
|
|
|
|
F&B Revenue | 10 000 | 100% | 12 000 | 100% | (2000) | (16.67) |
Cost of Goods Sold |
|
| 35% |
|
| |
Gross Profit |
|
|
|
|
|
|
Total Revenue |
| 100% |
| 100% |
| |
Total Cost of Goods Sold |
|
|
|
|
|
|
Total Gross Profit |
|
|
|
|
|
|
Other Operating Expenses | 9 250 |
|
| 15% |
|
|
Earnings Before Interest and Tax |
|
| 30.02% |
|
| |
Interest | 2 000 |
|
| 0% |
|
|
Earning Before Tax |
|
|
|
|
|
|
Income Tax |
|
|
|
| ||
Net Profit |
|
|
| 21.02% |
|
|
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