Working with the owner Stacy Adams, you have started thebudget process for next year. This information is on the template on Worksheet Budget provided. Both of you met and began to look at the projections for 20NY. From your notes you know that some of the expenses are going to increase and decrease. Using your income statement from 20TY as a guideline, you made notes in column G as to your known changes.

Your job is to create a tentative budget for 20NY. Make sure you include the changes indicated in BOLD in column G. If there are no directions in column G, then that amount or percentage will remain the same.

A	B	D	E	F	G	H	I
BUDGET WRKSHT
			THIS YEAR				NEXT YEAR
REVENUES		2016	% OF TOTAL REV.		Budget Notes (If no note, assume that it will be the same percentage or amount)	CALCULA -TIONS	BUDGET
	ROOM REVENUE	1,349,866	61.96%
	FOOD REVENUE	753,722	34.60%
	BAR REVENUE	73,936	3.39%
	OTHER SALES	1,006	0.05%
	TOTAL REVENUES	2,180,546	100.00%		Need $3 million in revenue - same breakdown as before	?	?
COST OF GOODS SOLD
	FOOD: COST OF FOOD SOLD	225,OOO	29.85%	OF FOOD	Food cost of 27% of Food Sales	?	?
	BAR: COST OF SALES	28,000	37.87%	OF CATERING
	TOTAL COST OF SALES	253,000	11.61%
GROSS PROFIT		1,927,546
LABOR COSTS
	ROOMS LABOR	450,000	33.34%	OF ROOMS	Should be 32% of Room Revenue	?	?
	FOOD LABOR	220,000	29.19%	OF FOOD
	BAR LABOR	22,000	29.76%	OF CATERING
	TOTAL LABOR	692,000	31.76%
OTHER EXPENSES
	ROOMS: OTHER COSTS	115,037	8.52%
	FOOD: OTHER COSTS	139,161	18.46%
	BAR: OTHER COSTS	2,000	2.71%
	TOTAL OTHER	256,198	11.76%
TOTAL OPERATING EXPENSES		979,348	43.52%
UNDISTRIBUTED OPERATING EXPENSES
	AD. & GENERAL
	MGMT SALARIES	150,667	6.92%	v	Will Increase to 7.5% of Sales	?	?
	OTHER	100,000	4.59%	v
	MARKETING EXPENSE	45,000	2.07%	v
	PROP. OP.	52,000	2.39%	v	Will Decrease to 1.75%	?	?
	UTILITIES	57,478	2.64%	v
	PROPERTY TAXES	80,000		f	Will Increase by 10%	?	?
	INSURANCE	31,462		f	Will Increase to $32,000	?	?
	INTEREST EXPENSE	161,087	7.39%	v
	DEP. EXPENSE	161,087		f	Will Increase to $161,250	?	?
	TOTAL UNDISTRIBUTED OPERATING EXPENSES	838,791	38.50%
INCOME BEFORE INCOME TAXES		140,557	6.36%
	INCOME TAXES	51,180	36.94%	Of Income	Tax Rate will Decrease to 35%	?	?
	NET INCOME	87,361	4.01%