Problem 3 The Anchor Resort is managed by Inns, Inc. The management contract requires 5 percent of total revenue to be transferred to the replacement reserves to cover future renovations and equipment replacements. Anchor's debt service payment is $10,000 per month. The lodging property has 250 guestrooms, an ADR of $100, and a paid occupancy of 70 percent. Its room revenue is 75 percent of its total revenue and its net operating income is 15 percent of its total revenue. Required: 1. Determine the Anchor's annual total revenue. 2. Determine the Anchor's annual net operating income. 3. Determine the Anchor's debt service coverage ratio for the year.