You have been assigned to prepare and analyze pro forma financial statements for the Hotel. The Hotel is a full service 270 room property which is in the process of being purchased by a group of private investors. The property has been fully renovated with the exception of the hotel's restaurant which in the process of construction and will be open in January 2024 at a cost of $780,000. The hotel has historically had an average room rate of $210 per night with an average occupancy rate of 88% annually. The total food and beverage revenues for 2023 are expected to be unchanged at $910,000 for the year. The hotel's food and beverage department has traditionally had an 80% to 20% mix of food to beverage revenues. Other income generated mostly from in-room services and is equal to 2.5% of the hotel's total rooms revenue. Cost of sales percentage will remain constant for the 4 years. After meeting with the investors, management and the controller of the hotel you have been given the following information and forecasted figures in order to prepare the 2023-2026 pro forma income statement and the 2023-2026 pro forma balance sheet. Assume all expense percentages remain constant except where increases are noted. Ignore the fact that 2024 is a leap year.

2024 Rooms revenues will increase by 3.75% over 2023 Food and Beverage revenues will increase by $4500 per day over 2023 Other income will increase by 1.5% over 2023 Salaries, wages and benefits will increase by 0.7% over 2023 Ulilities expenses will increase by 0.5% over 2023

NAME: \begin{tabular}{|c|c|c|c|c|} \hline \multirow{2}{*}{\begin{tabular}{l} Spartan Hotel \\ Pro Forma Income Statement \end{tabular}} & \multicolumn{2}{|c|}{2023} & \multicolumn{2}{|c|}{2024} \\ \hline & Dollars & % & Dollars & % \\ \hline \multicolumn{5}{|l|}{ Revenues } \\ \hline \multicolumn{5}{|l|}{ Rooms } \\ \hline \multicolumn{5}{|l|}{ Food } \\ \hline \multicolumn{5}{|l|}{ Beverage } \\ \hline \multicolumn{5}{|l|}{ Other } \\ \hline \multicolumn{5}{|l|}{ Total Revenues } \\ \hline Cost of sales & & 29.0% & & 29.0% \\ \hline \multicolumn{5}{|l|}{ Gross Profit } \\ \hline \multicolumn{5}{|l|}{ Expenses } \\ \hline Salaries, Wages and Benefits & & 33.0% & & \\ \hline Direct Operating Expenses & & 6.0% & & \\ \hline Marketing & & 4.0% & & \\ \hline Repair and Maintenance & & 6.0% & & \\ \hline General and Administrative expenses & & 5.0% & & \\ \hline Utilities & & 5.0% & & \\ \hline \multicolumn{5}{|l|}{ Total Operating Expenses } \\ \hline Occupancy Expense & & 5.0% & & \\ \hline Property taxes & & 3.0% & & \\ \hline Insurance & & 1.0% & & \\ \hline Depreciation & & 5.0% & & \\ \hline Interest & & 3.0% & & \\ \hline \multicolumn{5}{|l|}{ Total Non-operating Expenses } \\ \hline Total Expenses & & & & \\ \hline Total Income (Loss) before Taxes & & & & \\ \hline \end{tabular}