Case 2. (25 points) The manager of Gamma Motel, a small 40-room roadside motel, is seeking a 90.000$ bank loan at a 10% annual rate of interest. The local bank considering the loan application requires the motel to produce a budgeted income statement for next year (2021), to assess the credit risk of the motel. Gamma Motel's accountant has assembled the following schedule of information to facilitate preparation of 2021's budgeted income statement. 10 70% 50 7,50 30 Number of single rooms Estimated occupancy of single rooms Single rooms' projected average room rate Unit cost per single room sold Number of doble rooms Estimated occupancy of double rooms Double rooms' projected average room rate Unit cost per double room sold Operating fixed costs per annum Tax rate on gross profit 40% 70 7 180.000 40% a. Assuming the motel is open for 360 days in the year, prepare the budgeted income statement for 2021. Include the interest on the 90.000$ loan in the budgeted statement (17 points) b. The local bank has a policy of not lending to any business that cannot demonstrate a projected ebit to interest payments ratio greater than 3. Based on the budgeted figures, does the Gamma Motel satisfy the bank's requirements for loan approval? (8 points)