Problem 3 9. and equipment replacements. Alston Inn's debt service payment is $10,000 per o nercent. loaging property has 200 guestrooms, an ADR of $100, and a paid occupancy of 70 perce Its room revenue is 70 percent of its total revenue and its net operating income is 15 percert. of its total revenue. Required: 1. Determine the Inn's annual total revenue. 2. Determine the Inn's annual net operating income. and equipment replacements. Alston Inn's debt service payment is $10,000 per month. The The Alston Inn is managed by Inns, Inc. The management contract requires 6 percent of total revenue to be transferred to the replacement reserves to cover future renovations 3. Determine the Inn's debt service coverage ratio for the year.
Problem 3 9. and equipment replacements. Alston Inn's debt service payment is $10,000 per o nercent. loaging property has 200 guestrooms, an ADR of $100, and a paid occupancy of 70 perce Its room revenue is 70 percent of its total revenue and its net operating income is 15 percert. of its total revenue. Required: 1. Determine the Inn's annual total revenue. 2. Determine the Inn's annual net operating income. and equipment replacements. Alston Inn's debt service payment is $10,000 per month. The The Alston Inn is managed by Inns, Inc. The management contract requires 6 percent of total revenue to be transferred to the replacement reserves to cover future renovations 3. Determine the Inn's debt service coverage ratio for the year.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:ging liquidity of McDaniel's Place over the three-year period
4. Comment on the changing solvency of this business over the three-year period.
and equipment replacements. Alston Inn's debt service payment is $10,000 per month. The
was the average
total revenue to be transferred to the replacement reserves to cover future renovations
The Alston Inn is managed by Inns, Inc. The management contract requires 6 percent of
Problem 3
6.
and equipment replacements. Alston Inn's debt service pavment is $10,000 per o percent.
loaging property has 200 guestrooms, an ADR of $100. and a paid occupancy of 70 percem
Its room revenue is 70 percent of its total revenue and its net operating income is 15 percene
of its total revenue.
Required:
1. Determine the Inn's annual total revenue.
2. Determine the Inn's annual net operating income.
3. Determine the Inn's debt service coverage ratio for the year.
Droblem 4
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