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Hint: First calculate the below numbers, which can be used to calculate the budget revenue. Forecasted oссирапсу rate 3D Forecasted # of room sold = Forecasted ADR =

Hint: First calculate the below numbers, which can be used to calculate the budget revenue. Forecasted oссирапсу rate 3D Forecasted # of room sold = Forecasted ADR =

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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: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 =
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.
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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