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Problem 4 You are provided with specific account balances and transaction information for the year for the Nicholback Inn. Transaction data for 20X3 Benefits and
Problem 4
You are provided with specific account balances and transaction information for the year for the Nicholback Inn.
Transaction data for 20X3
- Benefits and payroll taxes for all employees are 20 percent of gross salaries and wages.
- The management fee to be paid to the management company is 2 percent of net room revenue and 10 percent of GOP.
- The food purchases totaled $50,000 during the year. Food inventory was $20,000 and $18,000 at the beginning and end of the year, respectively.
- The cost of employee meals totaled $3,000 for the year.
Required:
- Prepare a Summary income statement for the Nicholback Inn in accordance with Exhibit 3 in Chapter 3 of the Text in the area provided on the Problem 4 tab of the Excel file.
- You need only include the line items given; however, they must be in the correct portion of the report format.
- You need only include the current period dollar values, and their percentages as appropriate to either departmental or total revenue.
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