# Border Hotel Case Calculations Essay

1304 WordsJun 2, 20146 Pages
Revenue Estimates Revenue Item 100% Monthly 75% Monthly 50% Monthly Notes Rooms \$2,956,500 \$2,217,375 \$1,478,250 8,100 daily Leases \$180,000 \$135,000 \$90,000 TOTAL REVENUE \$3,136,500 \$2,352,375 \$1,568,250 Expences TOTAL VARIABLE COSTS \$454,000 \$340,500 \$227,000 TOTAL FIXED COSTS \$1,403,000 \$1,403,001 \$1,403,002 TOTAL EXPENSE BEFORE IT \$1,857,000 \$1,743,501 \$1,630,002 EBIT \$1,279,500 \$608,874 -\$61,752 Depreciation \$320,000 \$320,001 \$320,002 EBITDA \$1,599,500 \$928,875 \$258,250 Furnishing Interest \$110,000 \$110,000 \$110,000 20yr Mortgage Interest \$182,000 \$182,000 \$182,000 TOTAL INTEREST \$292,000 \$292,000 \$292,000 TAXES (40%) \$395,000.00 \$126,749.60 -\$141,500.80…show more content…
\$135,000 \$90,000 TOTAL REVENUE \$3,136,500 \$2,352,375 \$1,568,250 Expences TOTAL VARIABLE COSTS \$454,000 \$340,500 \$227,000 TOTAL FIXED COSTS \$1,403,000 \$1,403,001 \$1,403,002 TOTAL EXPENSE BEFORE IT \$1,857,000 \$1,743,501 \$1,630,002 EBIT \$1,279,500 \$608,874 -\$61,752 Depreciation \$320,000 \$320,001 \$320,002 EBITDA \$1,599,500 \$928,875 \$258,250 Furnishing Interest \$110,000 \$110,000 \$110,000 20yr Mortgage Interest \$182,000 \$182,000 \$182,000 TOTAL INTEREST \$292,000 \$292,000 \$292,000 TAXES (40%) \$395,000.00 \$126,749.60 -\$141,500.80 Furnishing Principal \$180,160 \$180,160 \$180,160 20yr Mortgage Principal \$49,713 \$49,713 \$49,713 TOTAL PRINCIPAL \$229,873 \$229,873 \$229,873 NET INCOME \$362,627 -\$39,749 -\$442,124 DIVIDEND PAYMENT \$29,010 -\$3,180 -\$35,370 RETAINED EARNINGS \$333,617 -\$36,569 EBIT/INTEREST 4.38 2.09 (0.21) EBITDA/INTEREST 5.48 3.18 0.88 BURDEN \$675,121.67 \$675,121.67 \$675,121.67 EBIT/BURDEN 1.90 0.90 (0.09) ROE= Net Income/OE (H1) 32.97% -3.61% -40.19% Revenue Estimates Revenue Item 100% Monthly 75% Monthly 50% Monthly Rooms \$2,956,500 \$2,217,375 \$1,478,250 Leases \$180,000 \$135,000 \$90,000 TOTAL REVENUE \$3,136,500 \$2,352,375 \$1,568,250 Expences TOTAL VARIABLE COSTS \$454,000 \$340,500 \$227,000 TOTAL FIXED COSTS \$1,403,000 \$1,403,001 \$1,403,002 TOTAL EXPENSE BEFORE IT \$1,857,000 \$1,743,501 \$1,630,002 EBIT