Question
The LaSorda Inns condensed income statement for 20x3 and 20x4 is as follows: 20x3 20x4 Rood Revenue $3,450,000 $3,675,000 Room department expenses 1,450,000 1,500,000 Undistributed
The LaSorda Inns condensed income statement for 20x3 and 20x4 is as follows:
| 20x3 | 20x4 |
Rood Revenue | $3,450,000 | $3,675,000 |
Room department expenses | 1,450,000 | 1,500,000 |
Undistributed operating expenses | 800,000 | 875,000 |
Gross operating profit | 1,200,000 | 1,300,000 |
Insurance, property taxes, and depreciation | 400,000 | 450,000 |
Interest expense | 100,000 | 90,000 |
Income before income taxes | 700,000 | 760,000 |
Income tases | 210,000 | 228,000 |
Net income | $490,000 | $532,000 |
The Lasorda Inn has 100 guestrooms only and its paid occupancy percentage was 78 percent and 80- percent for 20x3, respectively. Assume all rooms in the hotel were available for sale.
Q: Calculate the following for 20x3 and 20x4.
Profit margin
RevPAR
ADR
Operating efficiency ratio
Times interest earned ratio
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