& Laurie Llamos manages a Mexican restaurant in a rural Texas town. She wants to develop...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
& Laurie Llamos manages a Mexican restaurant in a rural Texas town. She wants to develop a comparative (horizontal) income statement so that she can compare the differences in her revenues, expenses, and profits from this year to last year. SALES Food Beverage Total Sales COST OF SALES Food Beverages Total Cost of Sales LABOR Management Staff Employee Benefits Total Labor PRIME COST OTHER CONTROLLABLE EXPENSES Direct Operating Expenses Music & Entertainment Marketing Utilities Administrative & General Expenses Repairs & Maintenance Total Other Controllable Expenses CONTROLLABLE INCOME Last Year (5) 3,025,618 622,649 997,622 132,370 269,262 628,277 138,828 171,114 3,228 61,342 103,314 93,628 48,429 This Year (5) 3,499,239 772,528 1,151,165 144,849 299,913 771,206 167,720 198,215 11,436 95,295 133,413 106,731 53,366 $ Variance % NON-CONTROLLABLE EXPENSES Occupancy Costs Equipment Leases Depreciation & Amortization Total Non-Controllable Expenses RESTAURANT OPERATING INCOME Interest Expense INCOME BEFORE INCOME TAXES Income Taxes NET INCOME 168,000 0 121,450 261,315 180,000 83,861 127,334 313,850 (1) Complete the above comparative Income statement following the USAR format. (10 points) (2) Laurie's goal was to increase her total sales by 15%. Did she achieve this goal? (2 points) (3) One of Laurie's plans to increase traffic into her restaurant and thus increase her sales was to hire a mariachi band to play at regular intervals during the meal service. This affected her music and entertainment expense. What was the percentage difference in music and entertainment expense? Do you think this had a positive or negative effect on sales? (4 points) (4) Laurie also wanted to increase her net income by 10%. Did she achieve this goal? (2 points) & Laurie Llamos manages a Mexican restaurant in a rural Texas town. She wants to develop a comparative (horizontal) income statement so that she can compare the differences in her revenues, expenses, and profits from this year to last year. SALES Food Beverage Total Sales COST OF SALES Food Beverages Total Cost of Sales LABOR Management Staff Employee Benefits Total Labor PRIME COST OTHER CONTROLLABLE EXPENSES Direct Operating Expenses Music & Entertainment Marketing Utilities Administrative & General Expenses Repairs & Maintenance Total Other Controllable Expenses CONTROLLABLE INCOME Last Year (5) 3,025,618 622,649 997,622 132,370 269,262 628,277 138,828 171,114 3,228 61,342 103,314 93,628 48,429 This Year (5) 3,499,239 772,528 1,151,165 144,849 299,913 771,206 167,720 198,215 11,436 95,295 133,413 106,731 53,366 $ Variance % NON-CONTROLLABLE EXPENSES Occupancy Costs Equipment Leases Depreciation & Amortization Total Non-Controllable Expenses RESTAURANT OPERATING INCOME Interest Expense INCOME BEFORE INCOME TAXES Income Taxes NET INCOME 168,000 0 121,450 261,315 180,000 83,861 127,334 313,850 (1) Complete the above comparative Income statement following the USAR format. (10 points) (2) Laurie's goal was to increase her total sales by 15%. Did she achieve this goal? (2 points) (3) One of Laurie's plans to increase traffic into her restaurant and thus increase her sales was to hire a mariachi band to play at regular intervals during the meal service. This affected her music and entertainment expense. What was the percentage difference in music and entertainment expense? Do you think this had a positive or negative effect on sales? (4 points) (4) Laurie also wanted to increase her net income by 10%. Did she achieve this goal? (2 points)
Expert Answer:
Answer rating: 100% (QA)
Ans AYes She achieved the goal since total sales growth ... View the full answer
Related Book For
Business Statistics for Contemporary Decision Making
ISBN: 978-0470910184
6th Edition
Authors: Ken Black
Posted Date:
Students also viewed these accounting questions
-
During March 2014, Toby Tool & Die Company worked on four jobs. A review of direct labor costs reveals the following summary data. Analysis reveals that Job A257 was a repeat job. Job A258 was a rush...
-
Differentiate everyday accounting from the types of work that might be done at big accounting firms. How can accounting help you think beyond simplistic debits and credits? present the information so...
-
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...
-
For the increasing marginal-extraction-cost model of the allocation of a depletable resource, how would the ultimate cumulative amount taken out of the ground be affected by (a) An increase in the...
-
Jooste Trust Corporation has two service departments: actuary and economic analysis. Jooste also has three operating departments: annuity, fund management, and employee benefit services. The annual...
-
Salman and Aloke are hiking on a flat level ground. Their starting point is taken as the origin and the unit vectors i and j are in the directions east and north. Salman walks with constant velocity...
-
Find the autocorrelation function of a random process whose power spectral density is given by \(S(\omega)=S_{0}=\) constant between the frequencies \(\omega_{1}\) and \(\omega_{2}\).
-
1. Using the information provided, prepare the report that Roberts requested, assuming that the project will begin immediately. Assume 45 working days are available to complete the project, including...
-
Let f (x)=4x-3 and g(x) = 3x+2. Find (4) (a) and the restriction of the domain.
-
Prepare a skeleton statement of revenues, expenditures, and changes in fund balances using the headings in Illustration 2-11 (e.g., Revenues, Expenditures, and Excess (Deficiency) of Revenues over...
-
What characteristics of developing countries are applicable to the Philippines? Identify and explain why you think so.
-
Toffee Inc. could not pay its $2,000 account with Candy Supplies Ltd. when it was due on September 1, 2023. However, on that date Candy Supplies agreed to accept Toffee's six-month promissory note at...
-
On March 18, when the posted prime rate was 2%, an investment of $2,000 was placed into an account earning prime + 1.5%. Effective May 2, the prime rate rose by 1%. If the money was withdrawn on...
-
A gross margin of 49.4% is targeted by a gift department. Retail reductions are 16% and cash discount are 4%, with alterations cost of 1%. Find the initial markup percentage.
-
WT has owned 75% of BD for a number of years. In the year to 31 December 20X3 WT had revenue of $350,000 and BD had revenue of $125,000. Included in WT's revenue is goods sold to BD for $25,000 that...
-
Manning Corporation sells inventory for a retail price of $16,000 (cost of $10,000), terms 3/10.n/30 Five days laterManning grants the customer an allowance for $1,000. Nine days after the sale,...
-
You just found your dream home for $375,000. You have $40,000 saved up for a down payment and now you are loan shopping. You have the following offers. a- A 15 year fixed mortgage at 6.25% b- A 30...
-
According to a New York Times columnist, The estate tax affects a surprisingly small number of people. In 2003, . . . just 1.25 percent of all deaths resulted in taxable estates, with most of them...
-
An entrepreneur wants to open an appliance service repair shop. She would like to know about what the average home repair bill is, including the charge for the service call for appliance repair in...
-
Two processes in a manufacturing line are performed manually: operation A and operation B. A random sample of 50 different assemblies using operation A shows that the sample average time per assembly...
-
Are random arrivals at a shoe store at the local mall Poisson distributed? Suppose a mall employee researches this question by gathering data for arrivals during one minute intervals on a weekday...
-
In an audit of a corporation that has a bond issue outstanding, the trust indenture is reviewed and confirmation as to the issue is obtained from the trustee. List eight matters of importance to the...
-
Robertson Company had accounts receivable of \(\$ 200,000\) at December 31, 200X, and had provided an allowance for uncollectible accounts of \(\$ 6,000\). After performing all normal auditing...
-
Tom Jones, CPA, is auditing the financial statements of a manufacturing company with a significant amount of trade accounts receivable. Jones is satisfied that the accounts are properly summarized...
Study smarter with the SolutionInn App