A small motel with a small dining room has the following estimates for Year 0007: Sales...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
A small motel with a small dining room has the following estimates for Year 0007: Sales Revenue $350,000 $150,000 35% of sales revenue Rooms sales revenue Dining room sales revenue Cost of sales: dining room Direct expenses 25% of rooms sales revenue 40% of dining sales revenue 25% of rooms sales revenue 40% of dining room sales revenue 35% of dining room sales revenue Wages expense Rooms expense Dining room expenses Cost of sales: food Other operating expenses Rooms expense Dining room expense Other income 5% of rooms revenue 10% of dining room revenue $5,500 (vending machines) contractor will continue to pay the same commission rate in Year 0007. PROB Indirect Expenses Administrative & general $25,600 $15,400 $16,700 expenses Marketing expenses Property operation & maint. expense Utilities expense Land rental expense Interest expense $12,500 $28,300 $11,500 Depreciation Expenses Building Furniture and equipment $50,200 $24,800 To July of 0007, the owner plans to buy $30,000 of new equipment for cash), less a $5,400 trade-in of used equipment. The vending machines. During 0007, principal payments on a mortgage on the building will be $30,300, and principal payments on a bank loan will be $25,300. The owner, who is also the only shareholder in the company, plans to pay herself dividends of $42,000 during Year 0007. a. Prepare a budgeted income statement for Year 0007. h. Calculate the motel's cash flow for Year 0007. A small motel with a small dining room has the following estimates for Year 0007: Sales Revenue $350,000 $150,000 35% of sales revenue Rooms sales revenue Dining room sales revenue Cost of sales: dining room Direct expenses 25% of rooms sales revenue 40% of dining sales revenue 25% of rooms sales revenue 40% of dining room sales revenue 35% of dining room sales revenue Wages expense Rooms expense Dining room expenses Cost of sales: food Other operating expenses Rooms expense Dining room expense Other income 5% of rooms revenue 10% of dining room revenue $5,500 (vending machines) contractor will continue to pay the same commission rate in Year 0007. PROB Indirect Expenses Administrative & general $25,600 $15,400 $16,700 expenses Marketing expenses Property operation & maint. expense Utilities expense Land rental expense Interest expense $12,500 $28,300 $11,500 Depreciation Expenses Building Furniture and equipment $50,200 $24,800 To July of 0007, the owner plans to buy $30,000 of new equipment for cash), less a $5,400 trade-in of used equipment. The vending machines. During 0007, principal payments on a mortgage on the building will be $30,300, and principal payments on a bank loan will be $25,300. The owner, who is also the only shareholder in the company, plans to pay herself dividends of $42,000 during Year 0007. a. Prepare a budgeted income statement for Year 0007. h. Calculate the motel's cash flow for Year 0007.
Expert Answer:
Answer rating: 100% (QA)
1 Income statement sales revenues Particulars Room sales revenue 350000 dining room sales revenue 15... View the full answer
Related Book For
Essentials of corporate finance
ISBN: 9780073405131
6th Edition
Authors: Stephen A. Ross, Randolph Westerfield, Bradford D. Jordan
Posted Date:
Students also viewed these finance questions
-
Automatic transmissions, Inc., has the following estimates for its new gear assembly project; price = $1,280 per unit; variable costs = $340 per unit, fixed costs = $5.5 million; quantity = 80,000...
-
Furry Friends Food Manufacturing has compiled the following estimates for operations For each of the following, perform a break-even analysis showing computation of the (a) Contribution margin ; (b)...
-
Benson Designs has prepared the following estimates for a longterm project it is considering. The initial investment is $18,250, and the project is expected to yield after-tax cash inflows of $4,000...
-
(CMA, adapted) Roletter Company makes and sells artistic frames for pictures of weddings, graduations, and other special events. Bob Anderson, the controller, is responsible for preparing Roletters...
-
Gladys Mensing and other patients took the generic version of metoclopramide over a long period a time, which resulted in serious neurological damage. Ms. Mensing and others filed suit against the...
-
The table on the following page refers to a survey 3 in which senior high school students in Dayton, Ohio, were randomly sampled. It cross-tabulates whether a student had ever smoked cigarettes and...
-
The chart below summarizes the U.S. exchange traded companies that issued corrections to their financial statements during the years 2001 through 2014. The data was compiled by Audit Analytics and...
-
EOQ for manufacturer. Lakeland Company, which produces lawn mowers, purchases 18,000 units of a rotor blade part each year at a cost of $60 per unit Lakeland requires a 15% annual rate of return on...
-
13.The market value of an investment project should be viewed as the sum of the standard NPV and the value of managerial options. Explain three different real or managerial options that management...
-
Fitz Products Inc. reported $1,075,049 profit in 2023 and declared preferred dividends of $75,100. The following changes in common shares outstanding occurred during the year. Jan. 1 78,000 common...
-
Solve the problem below: 2r2-5x+1=0
-
The National Labor Relations Board (NLRB) is responsible for administering and enforcing the NLRA. It also provides procedures through which employees can choose a union as a collective bargaining...
-
The Fair Labor Standards Act (FLSA) established minimum wages and maximum hours of employment.
-
Auditors will not be willing to give a positive assurance report on the management commentary in the annual report of companies until a liability cap is introduced.
-
The Americans with Disabilities Act of 1990 is legislation that further protects the rights of the disabled. The act prohibits job discrimination in hiring, promotion, and other requirements of...
-
The Rehabilitation Act of 1973 provides protection from discrimination to handicapped employees and is applied to both public and private organizations.
-
Question 3 Footfall Manufacturing Ltd. reports the following financial information at the end of the current year: Net Sales Debtor's turnover ratio (based on net sales) Inventory turnover ratio...
-
A stock has had returns of 8 percent, 26 percent, 14 percent, 17 percent, 31 percent, and 1 percent over the last six years. What are the arithmetic and geometric average returns for the stock?
-
Take a look back at Figure to answer the following questions: a. If you have $100, how many polish zlotys can you get? b. How much is one euro worth? c. If you have five million euros, how many...
-
This question illustrates what is known as discount interest. Imagine you are discussing a loan with a somewhat unscrupulous lender. You want to borrow $12,000 for one year. The interest rate is 13...
-
For the firm in Problem, suppose the book value of the debt issue is $60 million. In addition, the company has a second debt issue, a zero coupon bond with 20 years left to maturity; the book value...
-
Both trading and available-for-sale accounting methods are considered mark-to-market accounting for investments. Describe their similarities and differences. Which of the two methods do you think...
-
In 2006, CKX, Inc., a New York sports entertainment company, paid \($50\) million for an 80 percent ownership interest in G.O.A.T. LLC. (G.O.A.T. stands for Greatest of All Time and is a business...
-
In 2006, Danaher, Inc. announced its intent to acquire Sybron Dental Specialties, Inc., a manufacturer of dental products. Danaher indicated that it had agreed to pay \($47\) per share for all of...
Study smarter with the SolutionInn App