Question
In: Accounting
The General Manager of The Cougar Hotel would like you to take the balances for 20X7...
The General Manager of The Cougar Hotel would like you to take the balances for 20X7 and
20X8 and;
1. Prepare a comparative Summary Operating Statement that is in compliance with the USALI 11th Edition (i.e. make sure it is in the correct format, use the template found in the Income Statement module or in the “Other Course Resources” folder).
2. Once the Summary Operating Statement has been completed, perform a vertical and horizontal analysis of the statement.
THE COUGAR HOTEL 20X7 20X8
Administrative and General 1,426,678 1,460,830
Beverage Revenue 1,333,039 1,337,700
Building Wall Rent Received 250,000
Cell Tower Rent Received 500,000
Food and Beverage 3,999,116 4,122,300
Food and Beverage Expenses 4,265,724 4,340,000
Gain on Sale of Equipment 150,000
Inforamation and Telecommunications Systems 281,813 267,225
Insurance 264,200 285,040
Loss on Sale of Equipment 200,000
Management Fees 528,399 534,450
Miscellaneous Income 447,213 385,000
Property and Other Taxes 704,532 694,785
Property Operating and Maintenance 563,626 623,525
Recreation Department 440,333 450,450
Recreation Department Expenses 577,937 567,000
Replacement Reserve 1,409,065 1,425,200
Room Revenue 10,733,112 10,815,000
Rooms Department Expenses 2,992,887 3,010,000
Sales and Marketing 1,268,158 1,371,755
Spa Expenses 385,291 378,000
Spa Revenue 660,499 704,550
Utilities 792,599 748,230
CHECK FIGURES:
These are totals that you can use to check and see if your math is correct and also check if you have figures placed correctly.
20X7 20X8
Total Departmental Profit 9,391,473 9,520,000
Gross Operating Profit 5,058,599 5,048,435
EBITDA Less Replacement Reserve 2,452,403 2,508,960
Solutions
Expert Solution
| Particulars | 2008 | 2007 | Horizontal Analysis | |||
| Amount | Vertical | Amount | Vertical | Change | Change% | |
| Operating Revenue | ||||||
| Room revenue | 10,815,000.00 | 60.71% | 10,733,112.00 | 60.94% | 81,888.00 | 0.76% |
| Food and Beverage | 4,122,300.00 | 23.14% | 3,999,116.00 | 22.71% | 123,184.00 | 3.08% |
| Beverage | 1,337,700.00 | 7.51% | 1,333,039.00 | 7.57% | 4,661.00 | 0.35% |
| Other operating Department | 0.00% | 0.00% | ||||
| Spa Revenue | 704,550.00 | 3.95% | 660,499.00 | 3.75% | 44,051.00 | 6.67% |
| Recreation department | 450,450.00 | 2.53% | 440,333.00 | 2.50% | 10,117.00 | 2.30% |
| Miscellaneous Income | 385,000.00 | 2.16% | 447,213.00 | 2.54% | (62,213.00) | -13.91% |
| Total Operating Revenue | 17,815,000.00 | 100.00% | 17,613,312.00 | 100.00% | 201,688.00 | 1.15% |
| Departmental Expenses | ||||||
| Room Departmental Expenses | 3,010,000.00 | 16.90% | 2,992,887.00 | 16.99% | 17,113.00 | 0.57% |
| Food and Beverage Expenses | 4,340,000.00 | 24.36% | 4,265,724.00 | 24.22% | 74,276.00 | 1.74% |
| Other operating Department | 0.00% | 0.00% | ||||
| Spa Expenses | 378,000.00 | 2.12% | 385,291.00 | 2.19% | (7,291.00) | -1.89% |
| Recreation department | 567,000.00 | 3.18% | 577,937.00 | 3.28% | (10,937.00) | -1.89% |
| Total Departmental Expenses | 8,295,000.00 | 46.56% | 8,221,839.00 | 46.68% | 73,161.00 | 0.89% |
| Total Departmental Profit | 9,520,000.00 | 53.44% | 9,391,473.00 | 53.32% | 128,527.00 | 1.37% |
| Undistributed Operating Expenses | ||||||
| administrative and General | 1,460,830.00 | 8.20% | 1,426,678.00 | 8.10% | 34,152.00 | 2.39% |
| Information and Telecommunications Systems | 267,225.00 | 1.50% | 281,813.00 | 1.60% | (14,588.00) | -5.18% |
| Sales and Marketing | 1,371,755.00 | 7.70% | 1,268,158.00 | 7.20% | 103,597.00 | 8.17% |
| Property Operating and Maintenance | 623,525.00 | 3.50% | 563,626.00 | 3.20% | 59,899.00 | 10.63% |
| Utilities | 748,230.00 | 4.20% | 792,599.00 | 4.50% | (44,369.00) | -5.60% |
| Total Undistributed Expenses | 4,471,565.00 | 25.10% | 4,332,874.00 | 24.60% | 138,691.00 | 3.20% |
| Gross Operating Profit | 5,048,435.00 | 28.34% | 5,058,599.00 | 28.72% | (10,164.00) | -0.20% |
| Management Fess | 534,450.00 | 3.00% | 528,399.00 | 3.00% | 6,051.00 | 1.15% |
| Income before non operating Income and Expenses | 4,513,985.00 | 25.34% | 4,530,200.00 | 25.72% | (16,215.00) | -0.36% |
| Non operating Income and Expenses | ||||||
| Building Wall Rent Received | (250,000.00) | -1.40% | - | 0.00% | (250,000.00) | 100.00% |
| Cell Tower Rent Received | - | 0.00% | (500,000.00) | -2.84% | 500,000.00 | -100.00% |
| Gain on Sale of Equipment | (150,000.00) | -0.84% | - | 0.00% | (150,000.00) | -100.00% |
| Loss on Sale of Equipment | - | 0.00% | 200,000.00 | 1.14% | (200,000.00) | -100.00% |
| Insurance | 285,040.00 | 1.60% | 264,200.00 | 1.50% | 20,840.00 | 7.89% |
| Property and Other Taxes | 694,785.00 | 3.90% | 704,532.00 | 4.00% | (9,747.00) | -1.38% |
| Total Non operating Income and Expenses | 579,825.00 | 3.25% | 668,732.00 | 3.80% | (88,907.00) | -13.29% |
| Earnings before interest, taxes, depreciation and amortization | 3,934,160.00 | 22.08% | 3,861,468.00 | 21.92% | 72,692.00 | 1.88% |
| Replacement Reserve | 1,425,200.00 | 8.00% | 1,409,065.00 | 8.00% | 16,135.00 | 1.15% |
| EBITDA Less Replacement Reserve | 2,508,960.00 | 14.08% | 2,452,403.00 | 13.92% | 56,557.00 | 2.31% |
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