Vertical Financial Statement Analsysis 20152016201720182019 Indicate Your answer Questions TRUE or FAISE 1 Lenders are not interested in the company's income statements. 2 Return on Investments (ROI) is primarily of concern to owners and investors. 3 A company with a 90% of financial leverage is perceived to have great sucess potential. Liquidity ratios shows company's ability to meet its short-term obligations. Solvency ratios indicates company's profitability. Istanbul Hotel Balance Sheets December 31, 2017, 2018 and 2019 2017 2018 2019 Assets. Current Assets Cash Marketable Securities Net Receivables Prepaid Expenses Inventories Total Current Assets. Property and Equipment Land Building Fumishings and Equipment Less Accumulated Depreciation Net Property and Equipment Total Assets Liabilities and Owners' Equity Current Liabilities. Accounts Payable Notes Payable Acerued Wayes Total Current Liabilities Long-Term Liabilities Long-Term Debt Total Liabilities Owners' Equity Common Stock Paid-in Capital in Excess of Par Retained Earnings Total Owners' Equity Total Liabilitics and Owner's Equity \begin{tabular}{|l|l|l|} \hline $188,599 & $188,599 & $188,599 \\ \hline $540,000 & $440,000 & $600,000 \\ \hline $211,702 & $155,936 & $177,200 \\ \hline $940,301 & $884,535 & $965,799 \\ \hline \end{tabular} \begin{tabular}{l|l|l} $1,212,905 & $1,333,435 & $1,466,599 \end{tabular} \begin{tabular}{|r|r|r|} \hline $500,000 & $500,000 & $500,000 \\ \hline $470,000 & $480,000 & $590,000 \\ \hline $143,S95 & $100,000 & $110,000 \\ \hline $182,090 & $176,000 & $200,000 \\ \hline \end{tabular} \begin{tabular}{r|r|r} $931,505 & $904,000 & $1,000,000 \end{tabular} \begin{tabular}{|r|r|r|} \hline$30,600 & $37,800 & $42,000 \\ \hline$83,200 & $81,840 & $93,000 \\ \hline$161,120 & $118,680 & $138,000 \\ \hline \end{tabular} so $187,115 \$188.599 $6,480 $4,000 $5,000 \begin{tabular}{|l|r|r|} $281,400 & $242,320 & $278,000 \end{tabular} \begin{tabular}{|c|c|c|c|c|c|} \hline \multirow[b]{2}{*}{ Number of Rooms Available } & 2015 & 2016 & 2017 & 2018 & 2019 \\ \hline & 450 & 450 & 450 & 450 & 450 \\ \hline ADR & 215 & 220 & 225 & 227 & 231 \\ \hline OCC & 85% & 86% & 86 & 86% & 87% \\ \hline ReVPAR & 183 & 189 & 193 & 195 & 201 \\ \hline & & & & & \\ \hline & & & & & \\ \hline Istanbul Hotel lacome Stutement & & & & & \\ \hline \multicolumn{6}{|l|}{ REVENUE } \\ \hline Rooms. & 30.016 .687 .5 & 31.076 .100 & 31.700 .250 & 32,064,885 & 33,009322.5 \\ \hline Food \& Beverage & 7585,300 & 7,615,900 & 7,566,000 & 7,436,820 & 7,659,924.6 \\ \hline Other Opersted Depss & 1.412,800 & 1.455 .700 & 1.459 .400 & 1.667 .570 & 1.734 .272 .8 \\ \hline Misc Income & 2.278,000 & 2.210,000 & 2,280,900 & 2,437,760 & 2,559,648 \\ \hline Total Revenue & 41.292,787.5 & 42,357,700 & 43,006,550 & 43,607,035 & 44,963,167,9 \\ \hline \multicolumn{6}{|l|}{ DEPARTMENTAL EXPENSES } \\ \hline Rooms & 11.492 .600 & 11.5588 .800 & 11,633,700 & 13,523,900 & 13,794,378 \\ \hline Food \& Beverage & 7831,900 & 7,897,800 & 7,898,500 & 8,086,560 & 8,329,156,8 \\ \hline Other Operated Depts. & 504,600 & 512.000 & 519.400 & 588,130 & 611.655 .2 \\ \hline Total Depantmental Expenses & 19,829,100 & 19.968,600 & 20,051,600 & 22.198,590 & 22,735.190 \\ \hline Total Departmental Profit & 21,463,687,5 & 22.389 .100 & 22,954,950 & 21,408,445 & 22,227,977,9 \\ \hline \multirow{2}{*}{\multicolumn{2}{|c|}{ UNDISTRIBUTED OPERATING EXPENSES }} & & & & \\ \hline & & & & & \\ \hline Administrative \& General & 3.659.800 & 3,700,800 & 3,741,800 & 4,061,210 & 4,142,434,2 \\ \hline Marketing & 3565,100 & 3.571200 & 3,577,300 & 3,372,120 & 3,473,283,6 \\ \hline Utility Costs & 305,800 & 3,316,400 & 3,327,000 & 1,843,700 & 1,917,448 \\ \hline Property Operations \& Maintenance & 2525,400 & 2,142,500 & 2,359,600 & 2,192,120 & 2,301.936 \\ \hline Total Undistributed Operating Expenses & 128566,100 & 12,930,900 & 13,005,700 & 11,469,350 & 11,835.101.8 \\ \hline GROSS OPERATING PROFIT & 8,697,587,5 & 9.458,200 & 9,949250 & 9,939,095 & 10,392,876,1 \\ \hline Franchise Fes (Royalby) & 1.50034.375 & 1,553.805 & 1,585,012.5 & 1,603,244,25 & 1.650,466.125 \\ \hline Management Foes & 258227.625 & 285,746 & 298,477.5 & 298.172 .85 & 311,786.283 \\ \hline INCOME BEFORE FIXED CHARGES & 6.848,525,5 & 7,620,649 & 8,065,760 & 8,037,677.9 & 8,430,623,692 \\ \hline \multicolumn{6}{|l|}{ Selected Fixed Charges } \\ \hline Property Taxos & 1312,900 & 1,353,400 & I, 394,000 & 1.444,300 & 1.473 .186 \\ \hline Insurance & 447,900 & 455,600 & 455,500 & 483,480 & 497,984.4 \\ \hline Reserve For Capital Replacement & 430,379,375 & 472,910 & 497,462.5 & 1.127 .850 & 1,172.964 \\ \hline EBITDA & 4,657346.125 & 5,338,739 & 5,718,797.5 & 4,982,047,9 & 5,286,489,292 \\ \hline Depreciation & 680,000 & 680,000 & 680,000 & 621,000 & 609.000 \\ \hline Iaterest Expense & 60,000 & 60,000 & 60,000 & 60,000 & 60.000 \\ \hline Income Before Inxome Tax & 3,917,346.125 & 4,598,739 & 4,978,797,5 & 4,301,0479 & 4.617 .489 .292 \\ \hline Incame Tax & 1,096.856,915 & 1,287,646,92 & 1,394,063,3 & 1,204,293,412 & 1,292,897,002 \\ \hline Net Income & 2.820,489:21 & 3,311,092.08 & 3,584,734,2 & 3,096,754,488 & 3,324,592.29 \\ \hline \end{tabular} Vertical Financial Statement Analsysis 20152016201720182019 Indicate Your answer Questions TRUE or FAISE 1 Lenders are not interested in the company's income statements. 2 Return on Investments (ROI) is primarily of concern to owners and investors. 3 A company with a 90% of financial leverage is perceived to have great sucess potential. Liquidity ratios shows company's ability to meet its short-term obligations. Solvency ratios indicates company's profitability. Istanbul Hotel Balance Sheets December 31, 2017, 2018 and 2019 2017 2018 2019 Assets. Current Assets Cash Marketable Securities Net Receivables Prepaid Expenses Inventories Total Current Assets. Property and Equipment Land Building Fumishings and Equipment Less Accumulated Depreciation Net Property and Equipment Total Assets Liabilities and Owners' Equity Current Liabilities. Accounts Payable Notes Payable Acerued Wayes Total Current Liabilities Long-Term Liabilities Long-Term Debt Total Liabilities Owners' Equity Common Stock Paid-in Capital in Excess of Par Retained Earnings Total Owners' Equity Total Liabilitics and Owner's Equity \begin{tabular}{|l|l|l|} \hline $188,599 & $188,599 & $188,599 \\ \hline $540,000 & $440,000 & $600,000 \\ \hline $211,702 & $155,936 & $177,200 \\ \hline $940,301 & $884,535 & $965,799 \\ \hline \end{tabular} \begin{tabular}{l|l|l} $1,212,905 & $1,333,435 & $1,466,599 \end{tabular} \begin{tabular}{|r|r|r|} \hline $500,000 & $500,000 & $500,000 \\ \hline $470,000 & $480,000 & $590,000 \\ \hline $143,S95 & $100,000 & $110,000 \\ \hline $182,090 & $176,000 & $200,000 \\ \hline \end{tabular} \begin{tabular}{r|r|r} $931,505 & $904,000 & $1,000,000 \end{tabular} \begin{tabular}{|r|r|r|} \hline$30,600 & $37,800 & $42,000 \\ \hline$83,200 & $81,840 & $93,000 \\ \hline$161,120 & $118,680 & $138,000 \\ \hline \end{tabular} so $187,115 \$188.599 $6,480 $4,000 $5,000 \begin{tabular}{|l|r|r|} $281,400 & $242,320 & $278,000 \end{tabular} \begin{tabular}{|c|c|c|c|c|c|} \hline \multirow[b]{2}{*}{ Number of Rooms Available } & 2015 & 2016 & 2017 & 2018 & 2019 \\ \hline & 450 & 450 & 450 & 450 & 450 \\ \hline ADR & 215 & 220 & 225 & 227 & 231 \\ \hline OCC & 85% & 86% & 86 & 86% & 87% \\ \hline ReVPAR & 183 & 189 & 193 & 195 & 201 \\ \hline & & & & & \\ \hline & & & & & \\ \hline Istanbul Hotel lacome Stutement & & & & & \\ \hline \multicolumn{6}{|l|}{ REVENUE } \\ \hline Rooms. & 30.016 .687 .5 & 31.076 .100 & 31.700 .250 & 32,064,885 & 33,009322.5 \\ \hline Food \& Beverage & 7585,300 & 7,615,900 & 7,566,000 & 7,436,820 & 7,659,924.6 \\ \hline Other Opersted Depss & 1.412,800 & 1.455 .700 & 1.459 .400 & 1.667 .570 & 1.734 .272 .8 \\ \hline Misc Income & 2.278,000 & 2.210,000 & 2,280,900 & 2,437,760 & 2,559,648 \\ \hline Total Revenue & 41.292,787.5 & 42,357,700 & 43,006,550 & 43,607,035 & 44,963,167,9 \\ \hline \multicolumn{6}{|l|}{ DEPARTMENTAL EXPENSES } \\ \hline Rooms & 11.492 .600 & 11.5588 .800 & 11,633,700 & 13,523,900 & 13,794,378 \\ \hline Food \& Beverage & 7831,900 & 7,897,800 & 7,898,500 & 8,086,560 & 8,329,156,8 \\ \hline Other Operated Depts. & 504,600 & 512.000 & 519.400 & 588,130 & 611.655 .2 \\ \hline Total Depantmental Expenses & 19,829,100 & 19.968,600 & 20,051,600 & 22.198,590 & 22,735.190 \\ \hline Total Departmental Profit & 21,463,687,5 & 22.389 .100 & 22,954,950 & 21,408,445 & 22,227,977,9 \\ \hline \multirow{2}{*}{\multicolumn{2}{|c|}{ UNDISTRIBUTED OPERATING EXPENSES }} & & & & \\ \hline & & & & & \\ \hline Administrative \& General & 3.659.800 & 3,700,800 & 3,741,800 & 4,061,210 & 4,142,434,2 \\ \hline Marketing & 3565,100 & 3.571200 & 3,577,300 & 3,372,120 & 3,473,283,6 \\ \hline Utility Costs & 305,800 & 3,316,400 & 3,327,000 & 1,843,700 & 1,917,448 \\ \hline Property Operations \& Maintenance & 2525,400 & 2,142,500 & 2,359,600 & 2,192,120 & 2,301.936 \\ \hline Total Undistributed Operating Expenses & 128566,100 & 12,930,900 & 13,005,700 & 11,469,350 & 11,835.101.8 \\ \hline GROSS OPERATING PROFIT & 8,697,587,5 & 9.458,200 & 9,949250 & 9,939,095 & 10,392,876,1 \\ \hline Franchise Fes (Royalby) & 1.50034.375 & 1,553.805 & 1,585,012.5 & 1,603,244,25 & 1.650,466.125 \\ \hline Management Foes & 258227.625 & 285,746 & 298,477.5 & 298.172 .85 & 311,786.283 \\ \hline INCOME BEFORE FIXED CHARGES & 6.848,525,5 & 7,620,649 & 8,065,760 & 8,037,677.9 & 8,430,623,692 \\ \hline \multicolumn{6}{|l|}{ Selected Fixed Charges } \\ \hline Property Taxos & 1312,900 & 1,353,400 & I, 394,000 & 1.444,300 & 1.473 .186 \\ \hline Insurance & 447,900 & 455,600 & 455,500 & 483,480 & 497,984.4 \\ \hline Reserve For Capital Replacement & 430,379,375 & 472,910 & 497,462.5 & 1.127 .850 & 1,172.964 \\ \hline EBITDA & 4,657346.125 & 5,338,739 & 5,718,797.5 & 4,982,047,9 & 5,286,489,292 \\ \hline Depreciation & 680,000 & 680,000 & 680,000 & 621,000 & 609.000 \\ \hline Iaterest Expense & 60,000 & 60,000 & 60,000 & 60,000 & 60.000 \\ \hline Income Before Inxome Tax & 3,917,346.125 & 4,598,739 & 4,978,797,5 & 4,301,0479 & 4.617 .489 .292 \\ \hline Incame Tax & 1,096.856,915 & 1,287,646,92 & 1,394,063,3 & 1,204,293,412 & 1,292,897,002 \\ \hline Net Income & 2.820,489:21 & 3,311,092.08 & 3,584,734,2 & 3,096,754,488 & 3,324,592.29 \\ \hline \end{tabular}