SKI RESORT INVESTMENT DECISION CONSTANTS 2019 2020 2021 2022 2023 2024 2025 TAX RATE NA 0.20 0.20 0.20 0.20 0.20 0.20 CASH NEEDED TO START NEXT YEAR NA 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 INTEREST RATE ON DEBT NA 0.03 0.03 0.03 0.03 0.03 0.03 DAILY LIFT TICKET PRICE NA $100 $100 $100 $100 $100 $100 ANNUAL LIFT TICKET PRICE NA $700 $700 $700 $700 $700 $700 AVERAGE DAILY MONEY SPENT ON FOOD NA $25 $25 $25 $25 $25 $25 AVERAGE SKI SCHOOL DAILY PRICE NA $45 $45 $45 $45 $45 $45 AVERAGE DAILY RENTAL PRICE NA $25 $27 $30 $30 $35 $40 NUMBER OF SKI DAYS PER YEAR 100 100 100 100 100 100 OTHER DAILY REVENUE NA $15 $15 $15 $15 $15 $15 SUMMER POTENTIAL REVENUE $- $1,000,000 $1,000,000 $1,000,000 $1,200,000 $1,200,000 OPERATING COSTS - SNOW MAKING 2,000,000 1,800,000 1,800,000 1,800,000 1,700,000 1,600,000 OPERATING COSTS - SUMMER $350,000 $350,000 $400,000 $400,000 $400,000 $450,000 DAILY OTHER WINTER OPERATING COSTS 15,000 15,000 15,000 15,000 15,000 15,000 FIXED COSTS 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 INPUTS ALL YRS 2020 2021 2022 2023 2024 2025 RATE OF CHANGE IN SKIERS NA NA NA NA NA NA ECONOMIC OUTLOOK (Good, Poor) NA NA NA NA NA NA CLIMATE CHANGE FACTOR NA SUMMER OPERATIONS (Y OR N) NA SUMMARY OF KEY RESULTS NET INCOME AFTER TAXES - 2025 END-OF-THE-YEAR CASH ON HAND - 2025 END-OF-THE-YEAR DEBT OWED - 2025 PROFIT MARGIN - 2025 CALCULATIONS 2019 2020 2021 2022 2023 2024 2025 NUMBER OF DAILY SKIERS 3000 NUMBER OF SEASON SKIERS 500 YEARLY TOTAL SKIER REVENUE DAILY SKI SCHOOL ATTENDEES YEARLY SKI SCHOOL REVENUE DAILY EQUIPMENT RENTAL USERS YEARLY RENTAL REVENUE YEARLY FOOD CONCESSION REVENUE OTHER YEARLY REVENUE "INCOME STATEMENT AND CASH FLOW STATEMENT" 2019 2020 2021 2022 2023 2024 2025 BEGINNING-OF-THE-YEAR CASH ON HAND NA REVENUE - SKIERS NA REVENUE - SKI SCHOOL NA REVENUE - EQUIPMENT RENTAL NA REVENUE - FOOD CONCESSION NA REVENUE - OTHER NA REVENUE - POTENTIAL SUMMER NA TOTAL REVENUE NA OPERATING COSTS - SNOW MAKING NA SUMMER OPERATING COSTS NA YEARLY WINTER OPERATING COSTS NA FIXED COSTS NA TOTAL COSTS NA INCOME BEFORE INTEREST AND TAXES NA INTEREST EXPENSE NA INCOME BEFORE TAXES NA INCOME TAX EXPENSE NA NET INCOME AFTER TAXES NA 2019 2020 2021 2022 2023 2024 2025 "NET CASH POSITION (NCP) BEFORE BORROWING AND REPAYMENT OF DEBT (BEG OF YR CASH + NET INCOME)" NA ADD:BORROWING FROM BANK NA LESS: REPAYMENT TO BANK NA EQUALS: END-OF-YEAR CASH ON HAND 4000000 DEBT OWED 2019 2020 2021 2022 2023 2024 2025 BEGINNING-OF-YEAR DEBT OWED NA ADD: BORROWING FROM BANK NA LESS: REPAYMENT TO BANK NA EQUALS: END-OF-THE-YEAR DEBT OWED 2000000
SKI RESORT INVESTMENT DECISION CONSTANTS 2019 2020 2021 2022 2023 2024 2025 TAX RATE NA 0.20 0.20 0.20 0.20 0.20 0.20 CASH NEEDED TO START NEXT YEAR NA 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 INTEREST RATE ON DEBT NA 0.03 0.03 0.03 0.03 0.03 0.03 DAILY LIFT TICKET PRICE NA $100 $100 $100 $100 $100 $100 ANNUAL LIFT TICKET PRICE NA $700 $700 $700 $700 $700 $700 AVERAGE DAILY MONEY SPENT ON FOOD NA $25 $25 $25 $25 $25 $25 AVERAGE SKI SCHOOL DAILY PRICE NA $45 $45 $45 $45 $45 $45 AVERAGE DAILY RENTAL PRICE NA $25 $27 $30 $30 $35 $40 NUMBER OF SKI DAYS PER YEAR 100 100 100 100 100 100 OTHER DAILY REVENUE NA $15 $15 $15 $15 $15 $15 SUMMER POTENTIAL REVENUE $- $1,000,000 $1,000,000 $1,000,000 $1,200,000 $1,200,000 OPERATING COSTS - SNOW MAKING 2,000,000 1,800,000 1,800,000 1,800,000 1,700,000 1,600,000 OPERATING COSTS - SUMMER $350,000 $350,000 $400,000 $400,000 $400,000 $450,000 DAILY OTHER WINTER OPERATING COSTS 15,000 15,000 15,000 15,000 15,000 15,000 FIXED COSTS 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 INPUTS ALL YRS 2020 2021 2022 2023 2024 2025 RATE OF CHANGE IN SKIERS NA NA NA NA NA NA ECONOMIC OUTLOOK (Good, Poor) NA NA NA NA NA NA CLIMATE CHANGE FACTOR NA SUMMER OPERATIONS (Y OR N) NA SUMMARY OF KEY RESULTS NET INCOME AFTER TAXES - 2025 END-OF-THE-YEAR CASH ON HAND - 2025 END-OF-THE-YEAR DEBT OWED - 2025 PROFIT MARGIN - 2025 CALCULATIONS 2019 2020 2021 2022 2023 2024 2025 NUMBER OF DAILY SKIERS 3000 NUMBER OF SEASON SKIERS 500 YEARLY TOTAL SKIER REVENUE DAILY SKI SCHOOL ATTENDEES YEARLY SKI SCHOOL REVENUE DAILY EQUIPMENT RENTAL USERS YEARLY RENTAL REVENUE YEARLY FOOD CONCESSION REVENUE OTHER YEARLY REVENUE "INCOME STATEMENT AND CASH FLOW STATEMENT" 2019 2020 2021 2022 2023 2024 2025 BEGINNING-OF-THE-YEAR CASH ON HAND NA REVENUE - SKIERS NA REVENUE - SKI SCHOOL NA REVENUE - EQUIPMENT RENTAL NA REVENUE - FOOD CONCESSION NA REVENUE - OTHER NA REVENUE - POTENTIAL SUMMER NA TOTAL REVENUE NA OPERATING COSTS - SNOW MAKING NA SUMMER OPERATING COSTS NA YEARLY WINTER OPERATING COSTS NA FIXED COSTS NA TOTAL COSTS NA INCOME BEFORE INTEREST AND TAXES NA INTEREST EXPENSE NA INCOME BEFORE TAXES NA INCOME TAX EXPENSE NA NET INCOME AFTER TAXES NA 2019 2020 2021 2022 2023 2024 2025 "NET CASH POSITION (NCP) BEFORE BORROWING AND REPAYMENT OF DEBT (BEG OF YR CASH + NET INCOME)" NA ADD:BORROWING FROM BANK NA LESS: REPAYMENT TO BANK NA EQUALS: END-OF-YEAR CASH ON HAND 4000000 DEBT OWED 2019 2020 2021 2022 2023 2024 2025 BEGINNING-OF-YEAR DEBT OWED NA ADD: BORROWING FROM BANK NA LESS: REPAYMENT TO BANK NA EQUALS: END-OF-THE-YEAR DEBT OWED 2000000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
SKI RESORT INVESTMENT DECISION
CONSTANTS 2019 2020 2021 2022 2023 2024 2025
TAX RATE NA 0.20 0.20 0.20 0.20 0.20 0.20
CASH NEEDED TO START NEXT YEAR NA 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000
INTEREST RATE ON DEBT NA 0.03 0.03 0.03 0.03 0.03 0.03
DAILY LIFT TICKET PRICE NA $100 $100 $100 $100 $100 $100
ANNUAL LIFT TICKET PRICE NA $700 $700 $700 $700 $700 $700
AVERAGE DAILY MONEY SPENT ON FOOD NA $25 $25 $25 $25 $25 $25
AVERAGE SKI SCHOOL DAILY PRICE NA $45 $45 $45 $45 $45 $45
AVERAGE DAILY RENTAL PRICE NA $25 $27 $30 $30 $35 $40
NUMBER OF SKI DAYS PER YEAR 100 100 100 100 100 100
OTHER DAILY REVENUE NA $15 $15 $15 $15 $15 $15
SUMMER POTENTIAL REVENUE $- $1,000,000 $1,000,000 $1,000,000 $1,200,000 $1,200,000
OPERATING COSTS - SNOW MAKING 2,000,000 1,800,000 1,800,000 1,800,000 1,700,000 1,600,000
OPERATING COSTS - SUMMER $350,000 $350,000 $400,000 $400,000 $400,000 $450,000
DAILY OTHER WINTER OPERATING COSTS 15,000 15,000 15,000 15,000 15,000 15,000
FIXED COSTS 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000
INPUTS ALL YRS 2020 2021 2022 2023 2024 2025
RATE OF CHANGE IN SKIERS NA NA NA NA NA NA
ECONOMIC OUTLOOK (Good, Poor) NA NA NA NA NA NA
CLIMATE CHANGE FACTOR NA
SUMMER OPERATIONS (Y OR N) NA
SUMMARY OF KEY RESULTS
NET INCOME AFTER TAXES - 2025
END-OF-THE-YEAR CASH ON HAND - 2025
END-OF-THE-YEAR DEBT OWED - 2025
PROFIT MARGIN - 2025
CALCULATIONS 2019 2020 2021 2022 2023 2024 2025
NUMBER OF DAILY SKIERS 3000
NUMBER OF SEASON SKIERS 500
YEARLY TOTAL SKIER REVENUE
DAILY SKI SCHOOL ATTENDEES
YEARLY SKI SCHOOL REVENUE
DAILY EQUIPMENT RENTAL USERS
YEARLY RENTAL REVENUE
YEARLY FOOD CONCESSION REVENUE
OTHER YEARLY REVENUE
"INCOME STATEMENT AND
CASH FLOW STATEMENT" 2019 2020 2021 2022 2023 2024 2025
BEGINNING-OF-THE-YEAR CASH ON HAND NA
REVENUE - SKIERS NA
REVENUE - SKI SCHOOL NA
REVENUE - EQUIPMENT RENTAL NA
REVENUE - FOOD CONCESSION NA
REVENUE - OTHER NA
REVENUE - POTENTIAL SUMMER NA
TOTAL REVENUE NA
OPERATING COSTS - SNOW MAKING NA
SUMMER OPERATING COSTS NA
YEARLY WINTER OPERATING COSTS NA
FIXED COSTS NA
TOTAL COSTS NA
INCOME BEFORE INTEREST AND TAXES NA
INTEREST EXPENSE NA
INCOME BEFORE TAXES NA
INCOME TAX EXPENSE NA
NET INCOME AFTER TAXES NA
2019 2020 2021 2022 2023 2024 2025
"NET CASH POSITION (NCP) BEFORE
BORROWING AND REPAYMENT OF DEBT
(BEG OF YR CASH + NET INCOME)" NA
ADD:BORROWING FROM BANK NA
LESS: REPAYMENT TO BANK NA
EQUALS: END-OF-YEAR CASH ON HAND 4000000
DEBT OWED 2019 2020 2021 2022 2023 2024 2025
BEGINNING-OF-YEAR DEBT OWED NA
ADD: BORROWING FROM BANK NA
LESS: REPAYMENT TO BANK NA
EQUALS: END-OF-THE-YEAR DEBT OWED 2000000
AI-Generated Solution
AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.
Unlock instant AI solutions
Tap the button
to generate a solution
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education