The General Manager of The Cougar Hotel

PART 2:

The General Manager of The Cougar Hotel would like you to take the balances for 20X7 and

20X8 and; 

1.   Prepare a comparative Summary Operating Statement that is in compliance with the USALI 11th Edition (i.e. make sure it is in the correct format, use the template found in the Income Statement module or in the “Other Course Resources” folder).

2.   Once the Summary Operating Statement has been completed, perform a vertical and

horizontal analysis of the statement.

THE COUGAR HOTEL                                     20X7                     20X8

Administrative and General                                                  1,426,678             1,460,830

Beverage Revenue                                                                  1,333,039             1,337,700

Building Wall Rent Received                                                                                  250,000

Cell Tower Rent Received                                                         500,000

Food and Beverage                                                                 3,999,116             4,122,300

Food and Beverage Expenses                                                4,265,724             4,340,000

Gain on Sale of Equipment                                                                                     150,000

Inforamation and Telecommunications Systems                  281,813                267,225

Insurance                                                                                     264,200                285,040

Loss on Sale of Equipment                                                        200,000

Management Fees                                                                     528,399                534,450

Miscellaneous Income                                                               447,213                385,000

Property and Other Taxes                                                          704,532                694,785

Property Operating and Maintenance                                     563,626                623,525

Recreation Department                                                             440,333                450,450

Recreation Department Expenses                                           577,937                567,000

Replacement Reserve                                                            1,409,065             1,425,200

Room Revenue                                                                      10,733,112           10,815,000

Rooms Department Expenses                                               2,992,887             3,010,000

Sales and Marketing                                                               1,268,158             1,371,755

Spa Expenses                                                                               385,291                378,000

Spa Revenue                                                                                660,499                704,550

Utilities                                                                                        792,599                748,230

CHECK FIGURES:

These are totals that you can use to check and see if your math is correct and also check if you have figures placed correctly.

20X7                     20X8

Total Departmental Profit                                                     9,391,473             9,520,000

Gross Operating Profit                                                           5,058,599             5,048,435

EBITDA Less Replacement Reserve                                     2,452,403             2,508,960

Part 3: 

Use the financial statements and additional information from Part 1 and Part 2 and complete the Statement of Cash Flows, use the template below.  Note that the amount of blank spaces has already been organized for you, (that means each line with a number needs to be used) so make sure that you follow the format provided.

The Cougar Hotel

Statement of Cash Flows

For The Year Ending December 31, 20X8

Net Cash Flow From Operating Activities:

                   NET INCOME

Adjustments to reconcile net income to net cash from operating activities:

1.

2.

3.

4.

5.

6.

7.

Net Cash flow from operating activities

Net Cash Flow from Investing Activities

1.

2.

3.

4.

Net cash flow from investing activites

Net Cash Flow From Financing Activities

1.

2.

3.

Net cash flow from financing activities

Net Increase/(Decrease) in Cash During 20X8

Cash at the beginning of 20X8

Cash at the end of 20X8