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The Warwick Motel's income statement for 20X6 is provided below: Warwick Motel Income Statement For the year ended December 31, 20X6

The Warwick Motel's income statement for 20X6 is provided below: Warwick Motel Income Statement For the year ended December 31, 20X6

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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**Problem 9** The Warwick Motel's income statement for 20X6 is provided below: **Warwick Motel Income Statement For the year ended December 31, 20X6** | | Net Revenue | Cost of Sales | Labor Costs & Related Expenses | Other Expenses | Income (Loss) | |--------------------------------|-------------|---------------|-------------------------------|----------------|---------------| | **Operated Departments** | | | | | | | Rooms | $380,000 | $- | $92,000 | $30,000 | $258,000 | | Food | 180,000 | 54,000 | 69,000 | 20,000 | 37,000 | | Miscellaneous Income | 1,000 | - | - | - | 1,000 | | **Total Operated Departments** | 561,000 | 54,000 | 161,000 | 50,000 | 296,000 | **Undistributed Operating Expenses:** - Administrative and General: $43,250 (Labor) + $10,000 (Other Expenses) = $53,250 - Info. & Telecom. Systems: $20,000 (Labor) - Marketing: $10,000 (Other Expenses) - Property Operation and Maintenance: $12,000 (Labor) + $20,000 (Other Expenses) = $32,000 - Energy Costs: $27,000 (Other Expenses) This table presents the financial performance of Warwick Motel for the specified year, categorizing revenues and expenses across operated departments and undistributed operating expenses. Each section provides detailed costs and the resulting income or loss.
Transcribed Image Text:**Problem 9** The Warwick Motel's income statement for 20X6 is provided below: **Warwick Motel Income Statement For the year ended December 31, 20X6** | | Net Revenue | Cost of Sales | Labor Costs & Related Expenses | Other Expenses | Income (Loss) | |--------------------------------|-------------|---------------|-------------------------------|----------------|---------------| | **Operated Departments** | | | | | | | Rooms | $380,000 | $- | $92,000 | $30,000 | $258,000 | | Food | 180,000 | 54,000 | 69,000 | 20,000 | 37,000 | | Miscellaneous Income | 1,000 | - | - | - | 1,000 | | **Total Operated Departments** | 561,000 | 54,000 | 161,000 | 50,000 | 296,000 | **Undistributed Operating Expenses:** - Administrative and General: $43,250 (Labor) + $10,000 (Other Expenses) = $53,250 - Info. & Telecom. Systems: $20,000 (Labor) - Marketing: $10,000 (Other Expenses) - Property Operation and Maintenance: $12,000 (Labor) + $20,000 (Other Expenses) = $32,000 - Energy Costs: $27,000 (Other Expenses) This table presents the financial performance of Warwick Motel for the specified year, categorizing revenues and expenses across operated departments and undistributed operating expenses. Each section provides detailed costs and the resulting income or loss.
**The Income Statement** **Page 129** - **Total Undistributed Operating Expenses**: 63,250; 77,000; 140,250 - **Gross Operating Profit**: $561,000; $54,000; $224,250; $127,000; 155,750 - **Less: Rent, Property Taxes, and Insurance**: 17,000 - **EBITDA**: 138,750 - **Less: Interest Expense**: 21,000 - **Less: Depreciation**: 30,000 - **Income Before Income Taxes**: 87,750 - **Income Tax**: 35,100 **Net Income**: $52,650 --- **Questions:** 4. What is the amount of income the general manager is most likely responsible for during 20X6? 5. What is the labor cost percentage for 20X6? 6. What is the food cost percentage for 20X6?
Transcribed Image Text:**The Income Statement** **Page 129** - **Total Undistributed Operating Expenses**: 63,250; 77,000; 140,250 - **Gross Operating Profit**: $561,000; $54,000; $224,250; $127,000; 155,750 - **Less: Rent, Property Taxes, and Insurance**: 17,000 - **EBITDA**: 138,750 - **Less: Interest Expense**: 21,000 - **Less: Depreciation**: 30,000 - **Income Before Income Taxes**: 87,750 - **Income Tax**: 35,100 **Net Income**: $52,650 --- **Questions:** 4. What is the amount of income the general manager is most likely responsible for during 20X6? 5. What is the labor cost percentage for 20X6? 6. What is the food cost percentage for 20X6?
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