Prepare the cash budget for the hotel based on the given information and the budgeted income statement

Number of rooms 196 March April May June July Cash Budget ADR 300 S 315 $ 340 S 350 $ 360 DOC 70% 70% 70% 72% 72% April May June Cash Budgeting levPAR in 210 5 221 $ 238 5 252 5 259 Cash-Beginning of Month Blue's Hotel cash receipts/disbursements and REVENUE Estimated Cash Receipts Cash Sales 1-Cash sales represent 80% of each moth's sa Rooms $ 15,023,400 $ 15,774,570 $ 17,026,520 $ 18,028,080 $ 18,543,168 Collection of A/R 2-Credit sales represent the remaining 20% of Food & Beverage 1,980,450 $ 2,178,495 $ 2,396,345 $ 2,635,979 $ 2,899,577 Misc Income in the month of the sale, while the r Other Operated Departments 223,400 $ 241,272 260,574 5 281,420 $ 303,933 Total month. Miscellaneous Income 81,376 5 88,700 $ 97,570 $ 109,278 $ 119,113 Estimated Available Cash 3-Hotel receives cash for the projected misc. TOTAL REVENUE $ 17,308,626 $ 18,283,037 $ 19,781,008 $ 21,054,757 $ 21,865,791 June will be received in July. Estimated Cash Disbursements DEPARTMENTAL EXPENSES Payment of Cost of Sales Michael Scott's cash disbursements and expo Admin & General payments 3,004,680 $ 3,154,914 $ 3,405,304 $ 3,605,616 $ 3,708,634 Marketing payments 1-Purchases are paid during the current mont month; 64% of cost of sales of current month Food & Beverage 990,225 $ 1,089,248 $ 1,198,172 $ 1,317,989 $ 1,449,788 Utility Cost payment 2-Admin and General expenses and Utility Other Operated Departments 89,360 $ 96,509 $ 104,230 $ 112,568 $ 121,573 Property Operation & Maintenance payments 3-75% of Property Op and Maint expenses Franchise Fees Payment 25% are paid in the following month. TOTAL DEPARTMENTAL EXPENSES $ 4,084,265 5 4,340,670 $ 4,707,706 $ 5,036,173 $ 5,279,995 Management Fees Payments 4-Marketing expenses are paid as follows: 40 Property Taxes January. 60% paid in the month expensed. TOTAL DEPARTMENTAL PROFITS $ 13,224,361 $ 13,942,367 $ 15,073,302 $ 16,018,583 $ 16,585,796 Insurance 5-Franchise and management fees are paid in Reserve for Capital Replacement 6-Property Taxes are paid in November. UNDISTRIBUTED OPERATING EXPENSES Income Tax Payments 7-Insurance expenses and Reserve for Capita 8-Interest expense is included in the long term Purchase of Land Decemeber. Administrative & General 692,345 5 731,321 $ 791,240 $ 842,190 $ 874,632 Purchase of Equipment 9-Income taxes are paid quarterly. The tax ex Marketing 548,491 $ 593,430 $ 631,643 $ 655,974 Purchase of Building Utility Costs 346,173 5 365,661 $ 395,620 $ 421,095 $ 437,316 Total Cash Disbursements Other information: Property Operation & Maintenance 259,629 274,246 $ 296,715 315,821 $ 327,987 Estimated Cash-Ending 1-Cash at the beginning of April is $ 385,000. TOTAL UNDISTRIBUTED OPERATING EXPENSES $ 1,817,406 $ 1,919,719 $ 2,077,006 $ 2,210,749 $ 2,295,908 2-Land costing $25,000,000 is scheduled for equal installments in April, May, June, July, 3-Equipment costing $4,800,000 is scheduled GROSS OPERATING PROFIT $ 11,406,955 $ 12,022,648 $ 12,996,296 $ 13,807,834 $ 14,289,888 two equal installments in June and July. 4-A building is scheduled to be completed in Franchise Fees (Royalty) 5 751,170 $ 788,729 $ 851,326 $ 901,404 $ 927,158 paid in May and $800,000 will be paid in July Management Fees S 684,417 $ 721,359 $ 779,778 $ 828,470 $ 857,393 Prepare the cahs budget for April, May and INCOME BEFORE FIXED CHARGES $ 9,971,368 $ 10,512,560 $ 11,365,193 $ 12,077,960 $ 12,505,336 SELECTED FIXED CHARGES Property Taxes 346,173 5 365,661 $ 395,620 $ 421,095 $ 437,316 Insurance 63,000 $ 63,000 $ 63,000 $ 63,000 $ 63,000 Reserve For Capital Replacement 228,139 S 240,453 $ 259,926 $ 276,157 5 285,798 EBITDA 5 9,334,056 $ 9,843,447 $ 10,646,647 $ 11,317,708 $ 11,719,223 Depreciation 320,000 $ 280,000 $ 280,000 $ 280,000 $ 280,000 in un Interest Expense 105,000 $ 105,000 $ 68,000 $ 68,000 $ 68,000 Income Before Income Tax $ 8,909,056 5 9,458,447 $ 10,298,647 $ 10,969,708 $ 11,371,223 ncome Tax 2,672,717 $ 2,837,534 $ 3,089,594 $ 3,290,912 $ 3,411,367Cash Budget April May June Cash Budgeting- Cash-Beginning of Month Blue's Hotel cash receipts/disbursements and sales relationships are as follows: Estimated Cash Receipts Cash Sales 1-Cash sales represent 80% of each moth's sales. Collection of A/R 2-Credit sales represent the remaining 20% of each month's sales. 35% of the credit sales are Misc Income collected in the month of the sale, while the remaining 65% are collected in the following Total month. Estimated Available Cash 3-Hotel receives cash for the projected misc. income. The mise income for April through June will be received in July. Estimated Cash Disbursements Payment of Cost of Sales Michael Scott's cash disbursements and expenses have the following relationships: Admin & General payments 1-Purchases are paid during the current month as follows: 36% of cost of sales of previous Marketing payments month; 64% of cost of sales of current month Utility Cost payments 2-Admin and General expenses and Utility Costs are paid in the month they are expensed. Property Operation & Maintenance payments 3-75% of Property Op and Maint expenses are paid in the month expensed. The remaining Franchise Fees Payments 25% are paid in the following month. Management Fees Payments 4-Marketing expenses are paid as follows: 40% of the marketing expense are paid in Property Taxes January. 60% paid in the month expensed. Insurance 5-Franchise and management fees are paid in the month expensed. Reserve for Capital Replacement 6-Property Taxes are paid in November. 7-Insurance expenses and Reserve for Capital Replacemen are paid in January Income Tax Payments 8-Interest expense is included in the long term dept payments of $80,000 and are paid in Purchase of Land Decemeber. Purchase of Equipment 9-Income taxes are paid quarterly. The tax expense for April-June is paid in June. Purchase of Building Total Cash Disbursements Other information: Estimated Cash-Ending 1-Cash at the beginning of April is $ 385,000. 2-Land costing $25,000,000 is scheduled for purchase in April and is to be paid for in five equal installments in April, May, June, July, and August. 3-Equipment costing $4,800,000 is scheduled to be purchased in April and is to be paid in two equal installments in June and July. 4-A building is scheduled to be completed in May. Cost is $10,800,000; $10,000,000 will be paid in May and $800,000 will be paid in July. Prepare the cahs budget for April, May and June