Complete the following Income Statement to include the percentages. Note: Total Sales is the base (100%)...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Complete the following Income Statement to include the percentages. Note: Total Sales is the base (100%) Sales Food Sales Beverage Sales Total Sales Cost of Sales Cost of Food Sold Cost of Beverages Sold Total Cost of Sales Gross Margin Operating Expenses Labour Rent Other fixed costs Total Expenses Operating Income $ $437,920 $344,080 $153,272 $103,224 $289,340 $140,000 $57,400 $ $782,000 $256,496 $525,504 $486,740 $38,764 % 2. (12 Marks) a) Using the previous Income Statement as a guide, complete the income statement on the following page assuming that total sales revenue will increase. The percentage increase will be based on the first 3 numbers of your student number. For example, if your student number is 199 201 200, the percentage increase will be 19.9%. So based on that increase your new sales revenue would increase by $782,000 x 0.199= $155,618. This means in this example Sales would be $782,000+$155,618 = $937,618. This would be set at 100% in the new income statement. Food sales and Beverage sales would increase in terms of dollars but remain at the same percentage of total sales. Cost of food and cost of beverages sold percentages will remain the same. The percentages will remain the same, but the dollar amounts will increase since sales would have increased. Fixed costs will remain the same. Payroll or Labour costs are considered variable, meaning they are based on total sales. Apply the labour cost percentage you calculated in question 1, to the total sales in question 2 to calculate Total Labour expenses. Complete the following Income Statement to include the percentages. Note: Total Sales is the base (100%) Sales Food Sales Beverage Sales Total Sales Cost of Sales Cost of Food Sold Cost of Beverages Sold Total Cost of Sales Gross Margin Operating Expenses Labour Rent Other fixed costs Total Expenses Operating Income $ $437,920 $344,080 $153,272 $103,224 $289,340 $140,000 $57,400 $ $782,000 $256,496 $525,504 $486,740 $38,764 % 2. (12 Marks) a) Using the previous Income Statement as a guide, complete the income statement on the following page assuming that total sales revenue will increase. The percentage increase will be based on the first 3 numbers of your student number. For example, if your student number is 199 201 200, the percentage increase will be 19.9%. So based on that increase your new sales revenue would increase by $782,000 x 0.199= $155,618. This means in this example Sales would be $782,000+$155,618 = $937,618. This would be set at 100% in the new income statement. Food sales and Beverage sales would increase in terms of dollars but remain at the same percentage of total sales. Cost of food and cost of beverages sold percentages will remain the same. The percentages will remain the same, but the dollar amounts will increase since sales would have increased. Fixed costs will remain the same. Payroll or Labour costs are considered variable, meaning they are based on total sales. Apply the labour cost percentage you calculated in question 1, to the total sales in question 2 to calculate Total Labour expenses.
Expert Answer:
Related Book For
Financial Accounting and Reporting a Global Perspective
ISBN: 978-1408076866
4th edition
Authors: Michel Lebas, Herve Stolowy, Yuan Ding
Posted Date:
Students also viewed these general management questions
-
Use the attached "words.txt" file to store the words along with their ranks in an AVL tree. Then provide the user the option to search for any word. If the word exists the program displays the rank...
-
We have looked at the breakeven calculations for a single-product firm. However, most firms make more than one product - or service. Conceptually, multiple-product breakeven is the same as single...
-
Complete the following income statement and vertical analysis? Marten's Family Store Income Statement For Year Ending December 31, 2013 Percent of net sales Revenue: Gross sales Sales returns and...
-
In Problems 530, a. Classify the sequences as arithmetic, geometric, Fibonacci, or none of these. b. If arithmetic, give d; if geometric, give r; if Fibonacci, give the first two terms; and if none...
-
Goods costing NT$60,000 are purchased on account on July 15 with credit terms of 2/10, n/30. On July 18, a NT$6,000 credit was received from the supplier for damaged goods. Give the journal entry on...
-
The time required to assemble an electronic component is normally distributed with a mean and a standard deviation of 16 minutes and 8 minutes, respectively. a. Find the probability that a randomly...
-
What can organizations do to discourage the ability to be creative and to innovate?
-
On April 11, Edwards Construction Company purchased inventory for $30,000 on terms of 2/10, n/30. It pays the account balance on April 21. Edwards uses a periodic inventory system. Required: 1....
-
Michael's Mechanic C Corporation has cash in the amount of $ 1 5 2 , 0 0 0 , net income per books is $ 8 2 , 0 0 0 , common stock of $ 1 2 , 0 0 0 , distributions of $ 2 5 , 0 0 0 , entertainment in...
-
Forecasted financial statements are given Sales (all on credit) Cost of Goods Sold Gross Profit Selling and Administrative Expense Rent Expense Depreciation Expense Operating profit (EBIT) Interest...
-
Presented below are relevant extracts from T Company's statement of financial position as of December 31, 2023. Cash and cash equivalents 12,000,000 Trade and other receivables 38,000,000 Inventories...
-
Assume there are no transactions costs. You currently pay 130 US-Dollars for 100 Euros. The continuously compounded US-Dollar interest rate is 1% and the continuously compounded Euro interest rate is...
-
Under what circumstances may Component procedures allow DoD Governmentwide Commercial Purchase Card (GPC) Ordering Officers to make purchases up to simplified acquisition threshold
-
While working for child protective services, you get a call from a neighbor of the Johnson family. She tells you that the three Johnson children, ages 15, 13, and 9, come home after school to an...
-
Period costs are the, A. same as manufacturing overhead costs. OB. product costs that must be paid in the accounting period in which they are incurred. O C. costs related to production of products....
-
For each of the following differential equations, find all equilibrium solutions (if any exist) and determine their stability. Then solve the differential equation (or initial value problem) by...
-
Pinecrest Company Use the selected data from Pinecrest Company's financial statements to answer the following question. 2018 2017 Cash $ 22,000 $ 14,000 Accounts receivable 42,000 16,000 Merchandise...
-
2. Assume a person bends forward to lift a load "with his back" as shown in Figure P12.42a. The person's spine piv- ots mainly at the fifth lumbar vertebra, with the principal supporting force...
-
The Agfa-Gevaert group develops, produces and distributes an extensive range of analog and digital imaging systems and IT solutions, mainly for the printing industry and the healthcare sector, as...
-
1 Give at least three arguments in favor of each of the three basic methods of inventory valuation (FIFO, LIFO and WAC). 2 Provide at least three arguments in favor of perpetual and three for...
-
ArcelorMittal is a global steel producer headquartered in Luxembourg. The statement of financial position and statement of operations for the years 2006 to 2011 (source: annual reports 20062011),...
-
What is counting
-
Operating capital is the amount of interest bearing debt, preferred stock, and common equity used to acquire the company's net operating assets. Without this capital a firm cannot exist, as there is...
-
NOPAT is the amount of net income a company would generate if it had no debt and held no financial assets. NOPAT is a better measure of the performance of a company's operations because debt lowers...
Study smarter with the SolutionInn App