based on the given information & the income statements, prepare the cash budget for January, February & March

Number of rooms 100 Cash Budget December January February March April Cash Budgeting ADR 205 S 210 $ 215 S 224 $ 230 January February Ma OCC 82% 82% 83% 84% 85% Everglades Hotel's cash receipts and sales structure are as follows: Cash-Beginning of Month RevPAR 168 $ 172 $ 178 $ 188 $ 196 Estimated Cash Receipts 1-Cash sales represent 75% of each month's sales. Cash Sales REVENUE Collection of A/R Rooms $ 6,135,650 $ 6,285,300 $ 6,513,425 $ 6,867,840 $ 7,135,750 2-Credit sales represent the remaining 25% of each month's sales. Credit sales made in the current month are collected in the following month. Misc Income Food & Beverage $ 2,472,860 $ 2,720,146 $ 2,992,161 $ 3,291,377 $ 3,620,514 Proceeds from Sale of Land Other Operated Departments 342,050 $ 359,153 $ 377,110 $ 395,966 $ 415,764 3-The hotel receives cash each month for the projected misc. income. Tota Miscellaneous Income 102,000 $ 104,040 $ 106,121 $ 108,243 $ 110,408 Estimated Available Cash TOTAL REVENUE $ 9,052,560 $ 9,468,639 $ 9,988,817 $ 10,663,426 $ 11,282,436 4-The hotel expects to recevic $450,000 in March from sale of land. Estimated Cash Disbursements Payment of Cost of Sales DEPARTMENTAL EXPENSES The hotel's cash disbursements and expenses have the following structure: Admin & General payments Rooms $ 920,348 $ 1,558,805 $ 1,633,722 $ 1,681,945 $ 1,710,801 $ 1,236,430 $ 1,897,800 $ 1,898,500 $ 1,978,400 $ 1,968,600 1-Purchases are paid as follows: 45% of cost of sales of previous month; 55% of cost of Marketing payments Food & Beverage Utility Cost payments Other Operated Departments $ 102,615 $ 122,763 $ 144,802 $ 126,334 $ sales of current month. 119,258 2- 50% of Admin and General expenses are paid in the month they are expensed; 50% are Property Operation & Maintenance payments TOTAL DEPARTMENTAL EXPENSES $ 2,259,393 $ 3,579,368 $ 3,677,024 $ 3,786,679 $ 3,798,659 paid in the next month. Franchise Fees Payments 3-Marketing expenses are paid as follows: 40% of the marketing expense are paid in the Management Fees Payments TOTAL DEPARTMENTAL PROFITS $ 6,793,168 $ 5,889,271 $ 6,311,793 $ 6,876,747 $ 7,483,777 month expensed. 60% paid in the next month. Property Taxes 4- 70% of Utility Costs and Property Op and Maint expenses are paid in the month Insurance UNDISTRIBUTED OPERATING EXPENSES expensed. The remaining 30% are paid in the following month. Reserve for Capital Replacement Administrative & General $ 1,305,256 $ 1,346,864 $ 1,398,882 $ 1,466,343 $ 1,528,244 5-Franchise and management fees are paid in the month expensed. Marketing 702,628 $ 723,432 $ 749,441 $ 783,171 $ 814,122 -Property Taxes are paid in November. Income Tax Payments 7-Insurance expenses and Reserve for Capital Replacement are paid in October. Purchase of Equipment Utility Costs 431,577 S 444,059 $ 459,664 $ 479,903 $ 498,473 8-Interest expense is included in the long term dept payments of $500,090 and are paid in Purchase of Building Property Operation & Maintenance S 446,577 $ 459,059 $ 474,664 $ 494,903 513,473 December. Purchase of New Hotel TOTAL UNDISTRIBUTED OPERATING EXPENSES $ 2,886,038 $ 2,973,414 $ 3,082,651 $ 3,224,319 $ 3,354,312 9-Income taxes are paid quarterly. The tax expense for January-March period is paid in Total Cash Disbursements March. Estimated Cash-Ending GROSS OPERATING PROFIT $ 3,907,130 $ 2,915,856 $ 3,229,141 $ 3,652,427 $ 4,129,466 Other information: Franchise Fees (Royalty) $ 245,426 $ 251,412 $ 260,537 $ 274,714 $ 285,430 Management Fees S 117,214 $ 87,476 5 96,874 $ 109,573 $ 123,88 -Cash at the beginning of January is $280,000. 2-Equipment costing $750,000 is scheduled to be purchased in December and is to be paid in three equal installments in February, March and April. INCOME BEFORE FIXED CHARGES $ 3,544,490 $ 2,576,969 $ 2,871,730 $ 3,268,141 $ 3,720,152 3-A building costing $600,000 is scheduled to be completed in April. Half of the cost was paid in December. The remaining part will be paid in March. SELECTED FIXED CHARGES 4- A new hotel is being acquired in February for $800,000 and will be paid in four equal Property Taxes $ 246,000 $ 246,000 $ 246,000 $ 246,000 $ 246,000 installments in February, March, April and May in ur Insurance 72,000 72,000 72,000 $ 72,000 72,000 Reserve For Capital Replacement 78,143 S 58,317 64,583 $ 73,049 $ 82,589 Based on the given information and the income statements, prepare the cash budget for EBITDA $ 3,148,347 $ 2,200,652 $ 2,489,147 $ 2,877,092 $ 3,319,562 Depreciation S 235,000 S 235,000 $ 235,000 $ 235,000 235,000 Interest Expense 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 Income Before Income Tax 2,863,347 $ 1,915,652 $ 2,204,147 $ 2,592,092 $ 3,034,562 Income Tax $ 572,669 $ 383,130 $ 440,829 $ 518,418 $ 606,912 Net Income $ 2,290,678 $ 1,532,521 $ 1,763,318 $ 2,073,674 $ 2,427,650