CASE STUDY: FINANCIAL STATEMENTS

This scenario contains two standard financial statements that are required of all businesses: the Income Statement and Balance Sheet.

The income statement (also known as the Profit & Loss) documents the revenue, expenses, and profit of a business for a period. Use the following income statement to answer the questions:

Income Statement for Chez Cezanne Detail: Medium - $or * = For week ending... Show screen reader compatible view Aug 16 2025 Aug 23 2025 Aug 30 2025 Sep 6 2025 Revenue Food 65 % 65 % 65 % Beverage 35 % 35 % 35 %% Total Revenue 100 100 9% 100 % COGS Food Cost N/A 37 % 38% 38 % Beverage Cost N/A 4 % 4 4 % Waste N/A 2 % 6% Total COGS NIA 43 % 48 % 46 % Gross Margin NIA 57 % 52 % 54 % Expenses Staffing N/A 48 % 48% 44 % Rent N/A 6% 6 % 64 Marketing N/A 0%% 0% 48 4% Depreciation N/A 1 % 1 % 1 % Other NIA 0 % Total Expenses N/A 56 9% 55 5% 99 %% Profit N/A 1 % -3 5% -45 %% 02022 Knowledge Matters CloseIncome Statement for Chez Cezanne X Detail: Medium $ or % For week ending... Show screen reader compatible view Aug 16 2025 Aug 23 2025 Aug 30 2025 Sep 6 2025 Revenue Food 14,317 14,546 15,872 Beverage 7,799 7,875 8,364 Total Revenue 22,117 22,421 24,236 COGS Food Cost 8,282 8,427 9,147 Beverage Cost 942 957 1,010 Waste ooooo 343 1,411 987 Total COGS 9,566 10,795 11,144 Gross Margin 12,550 11,626 13,092 Expenses Staffing O 10,722 10,773 10,773 Rent 1,393 1,393 1,393 1,393 Marketing 0 0 11,657 Depreciation ooo 174 174 174 Other 0 0 0 Total Expenses 1,393 12,289 12,340 23,997 Profit -1,393 261 -714 -10,905 2022 Knowledge Matters CloseBalance Sheet for Chez Cezanne X Detail: Medium $ or % For week ending... Show screen reader compatible view Aug 16 2025 Aug 23 2025 Aug 30 2025 Sep 6 2025 Assets Cash 213,112 199,710 199,000 188,095 Inventory 0 15,457 15,769 16,092 Equipment 45,495 45,321 45,147 44,974 Total Assets 258,607 260,487 259,917 249,161 Liabilities Plus Equity Liabilities 0 1,619 1,762 1,911 Equity 258,607 258,868 258,155 247,249 Total Liabilities Plus Equity 258,607 260,487 259,917 249,161