a. Prepare the pro-forma income statement of the Room Department.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Hello! I need help making a pro forma income statement for this. Thank you!
Transcribed Image Text:a. Prepare the pro-forma income statement of the Room Department.
Hint: First calculate the below numbers, which can be used to calculate the budget revenue.
Forecasted occupancy rate =
Forecasted # of room sold =
%3D
Forecasted ADR =
Transcribed Image Text:3. A hotel operation has 100 rooms and a 100-seat restaurant. Please prepare a pro forma
income statement for each of the department as well as the consolidated pro forma income
statement of the hotel the next year.
Rooms department:
In 2019, the occupancy rate was 70% and the average room rate was $50. The GM is forecasting the
occupancy rate to increase by 10% and the average room rate is to be increased by $10 in 2020. Cost of
sales per room occupied is forecasted to be $10 per room. Department fixed operating expenses is
estimated to be $350,000. The hotel opens 365 days a year.
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