Problem 1:

The Pirates Cove Inn had total revenues of $750,000 for the month of June. Assume that the Pirates Cove Inns percentages for June were the same as the comparative results of operations information shown in the exhibit below:

Required:

Using the percentages provided above, convert the Pirates Cove Inn Revenue to dollars in an Income Statement Format.

INDUSTRY AVERAGES - 20X4 + Revenue Rooms Food Other Operated Departments Rentals and Other Income Total Revenue 69.5% 24.8% 4.4% 1.3% 100.0% 26.4% Departmental Expenses Rooms Food and Beverage Other Operated Departments Total Expenses 72.8% 71.9% 39.5% Undistributed Operating Expenses Administrative and General Sales and Marketing Property Operations and Management Utilities Total Undistributed Expenses 8.4% 8.1% 4.5% 3.7% 24.7% Gross Operating Profit 35.8% Management Fees 3.3% Income Before Fixed Charges 32.5%