CARSON'S INN - QUESTIONS (I only need question 1d)

CARSON'S INN INCOME STATEMENT For the years ended December 31, 2004 2003 2002 Rental Revenue $892,513 $796,500 $759,656 Other Revenues (note 1) 212,432 183,195 171,923 Total Revenues $1,104,945 $979,695 $931,579 Cost of Revenue (note 2) 441,978 411,472 419,211 Gross Profit $662,967 $568,223 $512,368 Marketing 110,495 97,970 93,158 General and Administrative (note 3) 287,286 254,721 242,211 Operating Income $265,187 $215,533 $177,000 Notes to Income Statement Note 1: Other Revenues Other revenues consist of charges to guests for charges for other goods and services. Note 2: Cost of Revenue Cost of revenue includes all payroll related costs of employees; depreciation on the property, improvements, and furniture; linen service charges; utilities; and bed taxes. Depreciation in cost of revenue 2004 2003 2002 Building (40 year life, Straight line) $50,000 $50,000 $50,000 Property Improvements (various) 72,000 68,500 65,000 Furniture (5 year life, Straight line) 88,000 82,000 82,000