Question
Conduct a vertical analysis ( common-size analysis ) for the income statements of Boatman Hotel for the months ended March 31 and April 30, 2016.
- Conduct a vertical analysis (common-size analysis) for the income statements of Boatman Hotel for the months ended March 31 and April 30, 2016.
|
March |
April |
Revenues: |
|
|
Rooms | 375,236 | 425,105 |
Food and Beverage | 186,253 | 176,523 |
Telecommunications | 4,213 | 5,326 |
Other Income | 46,879 | 49,654 |
Total Revenues |
|
|
Cost of Sales: |
|
|
Rooms | 130,256 | 154,987 |
Food and Beverages | 142,516 | 135,216 |
Telecommunications | 3,453 | 4,123 |
Other Income | 35,648 | 41,213 |
Total Cost of Sales | 311,873 | 335,539 |
Gross Profit: |
|
|
Rooms | 244,980 | 270,118 |
Food and Beverages | 43,737 | 41,307 |
Telecommunications | 760 | 1,203 |
Other Income | 11,231 | 8,441 |
Total Gross Profit |
|
|
Operating (Controllable) Expenses: |
|
|
Administration & General | 11,605 | 18,256 |
Marketing | 41,219 | 44,362 |
Franchise Fees | 21,005 | 24,032 |
Property Operations and Maintenance | 37,456 | 38,612 |
Utilities | 32,156 | 36,459 |
Total Operating Expenses | 143,441 | 161,721 |
Operating Income |
|
|
Other (Non-controllable) Expenses: |
|
|
Management Fee | 6,145 | 6,425 |
Property Taxes | 25,613 | 25,613 |
Reserve for Capital Improvements | 18,321 | 20,153 |
Insurance | 6,901 | 6,852 |
Interest Expense | 75,004 | 78,450 |
Total Non-controllable Expenses | 131,984 | 137,493 |
Income Before Income Taxes |
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