PINETREE MOTEL
OPERATING STATEMENT FOR 2001
(in industry trade journal format) Dollars Percentages*
Revenues:
Room rentals ($236,758 $1,660) $235,098 96.8
Other revenue 7,703 3.2
Total Revenues 242,801 100.0

Operating Expenses:
Payroll costs ($86,100+$26,305+$2,894 $795 $84+$1,128+$126)
115,674
47.6
Administrative and general — —
Direct operating expense ($8,800 + $1,660 + $6,820) 17,280 7.1
Fees and commissions — —
Advertising and promotion($2,335 $600 + $996) 2,731 1.1
Repairs and maintenance 8,980 3.7
Utilities ($12,205+$2,789+$5,611 $933 $105 $360+$840+$75+$153) 20,275 8.4
Total 164,940 67.9

Fixed expenses:
Property taxes, fees ($9,870 $1,005 + $492) 9,357 3.9
Insurance ($11,584 $2,025 + $1,119) 10,678 4.4
Depreciation 30,280 12.5
Interest ($10,605 $687 + $579) 10,497 4.3
Rent — —
Total 60,812 25.1
Profit(pretax) $ 17,049 7.0 *May not add exactly owing to rounding.

As a rough composition that attempts to adjust for the Kims’ (and probably other survey respondents’) dual roles as owners and operators, I suggest adding three accounts: Pinetree Average
Payroll costs 47.6 22.5
Administrative/general — 4.2
Profit 7.1 20.7
Total 54.7 47.4

This tends to substantiate the hypothesis that hired employees would perform the Kims’ task for less than $86,100.
Pinetree’s other operating costs do not seem to be out of line compared with the survey averages. the higher-than-average utilities may reflect a location with cold winters. Insurance and taxes are essentially uncontrollable. Repairs and maintenance may be below average because the Kims personally do some of this work, whereas other motels pay outsiders to do it.
Note that both rent and depreciation are shown in the journal’s survey data. This also causes