A) Prepare a Summary Operating Statement according to the format shown in the chapter. Following is the general ledger information for a small hotel. Not all information may be necessary to prepare the statement.

Room sales $ 1,050,000

Food and beverage sales 525,000

Rentals and other income 20,000

Payroll and other expenses:

Rooms 335,000

Cost of food sales 175,000

Payroll and other expenses:

F & B 250,000

Administrative and general 165,000

Marketing 67,000

Property operation and maintenance 62,000 Utilities 45,000

Management fees 20,000

Rent 28,000

Property taxes 45,000

Insurance (property & liability) 7,000

Interest 195,000

Depreciation 140,000

Amortization 6,000

Income tax expense 12,000

Note: The company has estimated its replacement reserve for the period to be $15,000

B) Use the information from problem 9 to prepare an income statement that would be sent to stockholders.