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

Expert Solution

Particulars	2008		2007		Horizontal Analysis
Particulars	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%

ekkarill92 answered 1 year ago

You have been appointed as the new general manager of a named hotel. The hotel is...

You have been appointed as the new general manager of a named hotel. The hotel is not performing as expected and is not meeting its target. Your first assignment is to resolve this problem. Describe in details how you would go about addressing this problem. Hint: Describe the data collection approaches you would use (Observation, interviews, surveys, historical research (past 5 years), etc.) and why you chose this specific form of data collection etc.

The manager of a small hotel resort is considering expansion. He would like to issue bonds...

The manager of a small hotel resort is considering expansion. He would like to issue bonds but do not quite understand why he may or may not receive what amount of money is stated on the face of the bond but he has to repay what is on the face of the face bond. Write a report to the manager explaining the market forces that determine how much money will be collected. Also explain how the interest payment on bonds...

You are the new IT Manager for the Cougar Corporation, a firm of 500 employees, with...

You are the new IT Manager for the Cougar Corporation, a firm of 500 employees, with 5 buildings located in three different states. Much of the information is critical to the operation of the business and contains key customer information. As the new IT Manager, one of your employees comes to you concerned with the safeguarding of the firm's information. As you investigate this issue further, you too are concerned as it does not appear many methods of safeguarding the...

You have recently been promoted to General Manager at Creekview Lodge, a 50 room hotel in...

You have recently been promoted to General Manager at Creekview Lodge, a 50 room hotel in Gatlinburg, Tennessee. You started working at the lodge in high school in the restaurant and after college, returned to Creekview as one of the assistant managers before being promoted to hotel manager. Recently, a 200-room hotel opened not far from Creekview Lodge, and although Creekview still maintains near 100% capacity there has been quite a bit of turnover. More than ten employees left to...

With this assignment I would like for you to take a topic in economics and analyze...

With this assignment I would like for you to take a topic in economics and analyze it using the concepts and ideas developed in the course. You can follow the format for writing a paper on Wal-Mart, or you can choose to analyze any other applicable topic that interests you using the paper guidelines provided (under 'Assignments'/'Writing Assignment'; I've provided examples of papers and topics composed by previous instructors and students in this course). If you have questions and/or problems...

If you became the new manager in a hotel with high employee turnover, what actions would...

If you became the new manager in a hotel with high employee turnover, what actions would you take to increase retention of employees?

1. The general manager of the Hilton Hotel in Sydney is evaluating an employment screening test...

1. The general manager of the Hilton Hotel in Sydney is evaluating an employment screening test for the front office clerical staff. During this evaluation all new clerical employees are given the test. 70% pass the test; the rest fail. At a later time, after the new clerical employees have been working for a while, their performance is evaluated as being satisfactory or unsatisfactory. Historically, 80% of all clerical employees have been found to be satisfactory, and 75% of the...

As a concerned employee of 'Delexis Hotel', Sunyani, write a letter to the General Manager informing...

As a concerned employee of 'Delexis Hotel', Sunyani, write a letter to the General Manager informing him of four (4) inherent challenges inhibiting the success of interpersonal communications within the hotel.

what relationship building activities would you suggest a hotel manager beside relatioship marketing?

I would like you to take a look at a company website of your choice. The...

I would like you to take a look at a company website of your choice. The company must be publicly traded. Explore their website to learn more about the company. After researching the company answer the 4 questions listed below. Be sure to provide specific details in your post that you found on the website for the company you chose. Be sure to provide a link to the website of the company you chose to use for this assignment. 1....