Question: The manager of Ritzy Rooms, a small 40-room Saskatchewan roadside motel, is seeking a $90,000 bank loan bearing a 10% annual rate of interest. Mr Scroogy, the manager of the bank considering the loan application, requires the motel to produce a budgeted profit and loss statement for next year, 20X1. Mr Scroogy requires this information to help him assess Ritzy Rooms' credit risk. Ritzy Rooms' accountant has assembled the following schedule of information to facilitate preparation of 20X1's budgeted profit and loss statement.
