HTA 402 Study Guide - Midterm Guide: Income Tax, Income Statement

• School: Ryerson University
• Department: Hospitality and Tourism Management
• Course: HTA 402
• Professor: Bernard Mc Evoy

Document Summary

Retained earnings = re beg + net income/loss dividends = end re. Purchases ending inventory total of food consumption) Interest income (investment # multiple by interest rate 0. 12) Invested 175000 on july 1 (6 months/12 = 2) in gov. The funds were invested at an annual interest rate of 3% ((invested amount x interest rate 0. 03) / life) At the end of the year they got. Management fees (to be paid to the management company is 2% of net room sales and 4% of total income before management fees and fixed charges (room sales revenue x 0. 02) Salaries and wages (e. g. fringe benefits and payroll taxes - inclusive of employee meals are 20% of gross salaries and wages all salaries and. Salary and wage total, and then add free meals to department salary and wages) Pays an average of 30% of its pre- tax income income tax = income before income taxes x 0. 3)