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A company is running a hotel. In 2018, the revenues for room rent was 7.500.000 and...

A company is running a hotel. In 2018, the revenues for room rent was 7.500.000 and revenues for food sales was 2.700.000. Rent expense was 580.000, electricity expense was 180.000, expense for cleaning was 550.000, salaries expense was 2.330.000, depreciation expense was 900.000 and interest expense was 370.000. Cost of input for sale of food was 1.200.000.

1) What is the net income for the year?

2) What is the EBITDA for the year?

3) What is the EBITDA contribution margin for the year?

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Answer #1

1) Answer: 4.090.000

Particulars Amount
Revenue for room rent 7.500.000
Revenue for Food sales 2.700.000
Total Revenue (A) 10.200.000
Cost of input for sale of food 1.200.000
Rent expense 580.000
Electricity expense 180.000
Cleaning expense 550.000
Salaries expense 2.330.000
Depreciation expense 900.000
Interest expense 370.000
Total Expense (B) 6.110.000
Net Income for the year (A-B) 4.090.000

2) Answer: 5.360.000

Particulars Amount
Net Income (Calculated above) 4.090.000
Add:
Interest expense 370.000
Tax -
Depreciation expense 900.000
Earnings before Interest Tax Depreciation & Ammortisation (EBITDA) 5.360.000

3) Answer: 52.55%

EBITDA Margin= EBITDA/ Total Revenue

= 5.360.000/10.200.000

= 52.55 %

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