Problem 14 The LaSorda Inn's condensed income statement for 20X3 and 20X4 is as follows: 20X3 20X4 Room Revenue Room department Undistributed operating expenses Gross operating profit 3,450,000 $3,675,000 1,450,000 ,0,0 875,000 1,300,000 450,000 90,000 760,000 228,000 $ 490,000 532,000 expenses 800,000 1,200,000 Insurance, property taxes, and depreciation400,000 100,000 700,000 210,000 Interest expense Income before income taxes Income taxes Net income Ratio Analysis 287 The LaSorda Inn has 100 guestrooms only and its paid occupancy percentage was 78 percent and 80 percent for 20X3 and 20X4, respectively. Assume all rooms in the hotel were available for sale Required I. Calculate the following for 20X3 and 20X4. a. Profit margin b. RevPAR C. ADR d. GOPAR e. Operating efficiency ratio f. Times interest earned ratio 2. Briefly comment on the changes in each ratio from 20X3 to 20X4