Can you please help me prepare a budgeted income statement for Year 2 in Exercise 13-55. Prepare Budgeted Financial Statements! I'm having trouble figuring out the calculations. Thanks bunches!!
13-55. Prepare Budgeted Financial Statements (L0 13-7) HomeSuites is a chain of all-suite, extended-stay hotel properties. The chain has 15 properties excel with an average of 200 rooms in each property. In year 1, the occupancy rate (the number of rooms lled divided by the number of rooms available) was 70 percent, based on a 365-day year. The average room rate was $180 for a night. The basic unit of operation is the \"night,\" which is one room occupied for one night. 533 Part IV Management Control Systems The operating income for year 1 is as follows: , ,,,A "W" , J g 1_ __7_7 Homems'uites 7 _ 2 7 WOperating Income 3 - Year 1 1i cameos. We a, .,, WW . M 5 Sales revenue ' ._ ,. W W _,_ , 77,, v ,7, , VHA _, , MT! 5 ' 6 Lodging $ 137,970,000 7 _ Food & b_everage 19,162,500 Lemm- (Nym - F C + \\I C\\ 7 8 Miscellaneous _ _' 7 7,665,000 9 Total revenues $ 164,797,500 1- MUG: " ' ~ * m ,4 (.U c, \\I C Costs C F\\ 9 12 Labor :5 44,325,000 '13 Food {beverage , _ 13,797,000 - (/c\\ 14 Miscellaneous __ 9,198,000 15 Management 2,500,000; \"VF C FC\\ FC 16 Utilities, etc. _ 37,500,000 17 DePr9EtPn ., 7 , A. W ,, 19:?99209..- - ' (,FCX 4 18 Marketing . 7 7 25,000,000 . 19 Other costs M LrC\\ 20 Total 91 W 22 Operating profit W ._ MW ,7- .. . a, ...,,,A Wi.__,.,, In year 1, the average xed labor cost was $400,000 per property. The remaining labor cost was . variable with respect to the number of nights. Food and beverage cost and miscellaneous cost are all variable with respect to the number of nights. Utilities and depreciation are xed for each property. The remaining costs (management, marketing, and other costs) are xed for the rm. At the beginning of year 2, HomeSuites will open three new properties with no change in the average number of rooms per property. The occupancy rate is expected to remain at 70 percent. Management has made the following additional assumptions for year 2: - The average room rate will increase by _5_ percent. [Food and beverage revenues per night are expected to decline by 20 percent with no \\[C change in the cost. ~ _ ' The labor cost (both the xed per property and variable portion) is We. ' The miscellaneous cost for the room is expected to increase by 25 percent, with no change in the miscellaneous revenues per room. ' Utilities and depreciation costs (per property) are forecast to remain unchangd. ' Management costs will increase by 8 percent, and marketing costs will increase by 10 av imam. - Other costs are not expected to change. Required Prepare a budgeted income statement for year 2
