Problem 24 Bill Bloom is interested in investing in a new rooms-only lodging property. He needs some financial projections for a single year for the proposed operations. He provides the following information: 1. Rooms sales: a. Average room rate $100 b. Average daily occupancy 65% c. Available rooms per day 100 2. Miscellaneous Income 5% of total revenue 3. Administrative and general fixed labor $20,000 per month Marketing fixed labor $50,000 annually 4. Variable expenses (as a percentage of total room sales): a. Rooms labor 20% b. Rooms other expense 10% c. Administrative and general other-3\% d. Marketing 4% e. Maintenance-5\% f. Information and Telecommunications Systems 3% 5. Other fixed expenses: a. Depreciation $200,000 b. Utilities $95,000 c. Insurance $60,000 d. Property taxes $80,000 e. Interest Expense- $100,000 6. Management fee 2% of room sales and 10% of GOP. 7. Non-operating income $50,000 annually. 8. Income tax rate- 20 percent (as a percentage of income before taxes). 9. Assume the property will be open 365 days of the year. Required: Prepare an income statement based on the USALI. Use Exhibit 4 as a guide. Round all figures to the nearest $1. Problem 24 Bill Bloom is interested in investing in a new rooms-only lodging property. He needs some financial projections for a single year for the proposed operations. He provides the following information: 1. Rooms sales: a. Average room rate $100 b. Average daily occupancy 65% c. Available rooms per day 100 2. Miscellaneous Income 5% of total revenue 3. Administrative and general fixed labor $20,000 per month Marketing fixed labor $50,000 annually 4. Variable expenses (as a percentage of total room sales): a. Rooms labor 20% b. Rooms other expense 10% c. Administrative and general other-3\% d. Marketing 4% e. Maintenance-5\% f. Information and Telecommunications Systems 3% 5. Other fixed expenses: a. Depreciation $200,000 b. Utilities $95,000 c. Insurance $60,000 d. Property taxes $80,000 e. Interest Expense- $100,000 6. Management fee 2% of room sales and 10% of GOP. 7. Non-operating income $50,000 annually. 8. Income tax rate- 20 percent (as a percentage of income before taxes). 9. Assume the property will be open 365 days of the year. Required: Prepare an income statement based on the USALI. Use Exhibit 4 as a guide. Round all figures to the nearest $1