Reserves Based on What? One question that is seldom addressed with reserves is what they are based on. If a marina has a large income from fuel sales, do we apply a percentage that includes them? Do we apply that percentage based on total fuel sales or just the gross margin? Since many marinas do not.
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Marina Reserves for Replacement – Part 1 of 2
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Posted by John Simpson
eserves for replacement, also referred to as a capital reserve, are monies set aside periodically to pay for replacement of short-lived items. For a marina, I've found that this is a particularly "sticky wicket" because the "one size fits all" model just doesn't work. Reserves as a Line Item 
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Read moreOwners Don’t Reserve – They Refinance
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Posted by John Simpson
We've had some interesting roundtable discussions about reserves in the office. The big question is why don't we see reserve line items on income statements or as a separate deposit/bank account on the balance sheet? For marinas, this is an even more important question because it seems that lenders don't understand how much of a.
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