The Gold Bay Hotel is developing a master budget and pro-forma financial statements for 2016. The beginning balance sheet for the fiscal year 2016 is estimated to be as follows:

During the year, the hotel expects to rent 30,000 rooms. Rooms rent for an average of £90 per night. Additionally, the hotel expects to sell 40,000 meals at an average price of £20 per meal. The variable cost per room rented is £30, and the variable cost per meal is £8. The fixed costs, excluding depreciation, are projected to be £2 million. Depreciation is expected to be £500,000. The hotel also plans to refurbish the kitchen at a cost of £200,000, which is capitalized (included in the facility account). Interest on the notes payable is expected to be £50,000, and £100,000 of the notes payable will be retired during the year. The ending accounts receivable balance is projected to be £40,000 and the ending accounts payable balance is expected to be £30,000.
Prepare pro-forma financial statements for the end of the year.

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Cash Accounts receivable Facilities Accumulated dep. Total assets Gold Bay Hotel Estimated Balance Sheet January 1, 2016 20,000 Accounts payable 20,000 30,000 Notes payable 500,000 3,010,000 Share capital 100,000 (1,100,000) Retained earnings 1,340,000 1,960,000 Total liabilities and equity 1,960,000