note i just neeed the answer for 13.6

P13.4 A new 50-room budget motel is being planned. Total cost will be $1,450,000, of which land will be $150,000, building $900,000, furniture and equipment $300,000, and the balance for preopening interest and other expenses. The building will be financed 70 percent by an 8 percent mortgage for 21 years. The annual payment to amortize (pay back principal and interest) this mortgage will be $63,000. The furniture and equipment will be financed 75 percent by a chattel mortgage at 11 percent, repayable in five equal installments of $61,000 principal and interest. Apart from the mortgage and chattel mortgage amounts, the balance of the total investment required will be from equity.

a. Calculate the amount of the equity investment.

b. Prepare the building mortgage repayment schedule for the first five years. Round calculated figures to the nearest $1,000.

c. Prepare the chattel mortgage repayment schedule. Round calculated figures to the nearest $1,000.

P13.5 Given the facts in Problem 13.4, assume the building will be depreciated at 6 percent double declining balance, and that furniture and equipment will be depreciated at 25 percent double declining balance. Prepare depreciation schedules for the first five years. (Round calculated figures to the nearest $1,000.)

P13.6 Given the facts in Problems 13.4 and 13.5 and the following additional information, prepare the pro forma income statements for each of the first five years:

Year average room per rate occupancy %

1 30 70%

2 30 75%

3 30 75%

4 30 75%

5 30 80%

Rooms operating costs average 60 percent of total room revenue. Indirect expenses will be $40,000 in year 1 and will increase by $4,000 a year for each of the next four years. The preopening interest and other expenses total $100,000 and will be amortized equally over each of the first five years. Income tax, if any, will be 25 percent of earnings before income tax. Note, however, that if there are any losses, they may be carried forward and deducted from earnings before income tax, before the 25 percent tax rate is applied. (Round all calculated figures to the nearest $1,000.)