1. Nicole Englezakis manages a South African restaurant in a large southern city. The owner wants...

 

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1. Nicole Englezakis manages a South African restaurant in a large southern city. The owner wants to know how wel Nicole did this year at generating sales, controlling expenses, and providing a profit. Complete Nicole's P&L using vertical analysis. Nicole's P&L Last Year This Year SALES: Food $3.706,381 $3,746,245 Beverage $647,555 1,255,358 Total Sales COST OF SALES: Food 1,282,656 1,611,630 Beverage 145,607 162,231 Total Cost of Sales GROSS PROFIT: Food 2,423,725 2,134,615 Beverage 501,948 1,093,127 Total Gross Profit OPERATING EXPENSES: Salaries and Wages 1,230,910 1,256,779 Employoe Benefits 190,394 196,790 Direct Operating Expenses 234,670 232,571 Music and Entertainment 4,427 13,418 Marketing 84,126 111,813 Utility Services 141,688 156,538 Repairs and Maintenance 66,416 62,616 Administrative and Ganeral 128,403 125,230 Occupancy 230,400 211,200 Depreciation 79,699 98,397 Total Operating Expenses Operating Income Interest 166,560 149,405 Income Before Income Taxes Income Taxes 147,192 245,194 Net Income a. When comparing this year to last year, was Nicole's marketing expense in dollars higher or lower? b. Was Nicole's marketing expense % higher or lower this year? c. Do you think that her marketing expense this year positively or negatively contributed to her revenues? Why? d. When comparing this yoar to last year, was Nicole's salaries and wages expensa in dollars higher or lowor? e. Was Nicole's salaries and wages expense % higher or lower this year? f. Do you think that her salaries and wages expense this year positively or negatively contributed to har net income? Why? g. The owner promised Nicole that he would give her a raise if she increased profit margin by at least 2%. Should Nicole receive a raise? Why or why not? 1. Nicole Englezakis manages a South African restaurant in a large southern city. The owner wants to know how wel Nicole did this year at generating sales, controlling expenses, and providing a profit. Complete Nicole's P&L using vertical analysis. Nicole's P&L Last Year This Year SALES: Food $3.706,381 $3,746,245 Beverage $647,555 1,255,358 Total Sales COST OF SALES: Food 1,282,656 1,611,630 Beverage 145,607 162,231 Total Cost of Sales GROSS PROFIT: Food 2,423,725 2,134,615 Beverage 501,948 1,093,127 Total Gross Profit OPERATING EXPENSES: Salaries and Wages 1,230,910 1,256,779 Employoe Benefits 190,394 196,790 Direct Operating Expenses 234,670 232,571 Music and Entertainment 4,427 13,418 Marketing 84,126 111,813 Utility Services 141,688 156,538 Repairs and Maintenance 66,416 62,616 Administrative and Ganeral 128,403 125,230 Occupancy 230,400 211,200 Depreciation 79,699 98,397 Total Operating Expenses Operating Income Interest 166,560 149,405 Income Before Income Taxes Income Taxes 147,192 245,194 Net Income a. When comparing this year to last year, was Nicole's marketing expense in dollars higher or lower? b. Was Nicole's marketing expense % higher or lower this year? c. Do you think that her marketing expense this year positively or negatively contributed to her revenues? Why? d. When comparing this yoar to last year, was Nicole's salaries and wages expensa in dollars higher or lowor? e. Was Nicole's salaries and wages expense % higher or lower this year? f. Do you think that her salaries and wages expense this year positively or negatively contributed to har net income? Why? g. The owner promised Nicole that he would give her a raise if she increased profit margin by at least 2%. Should Nicole receive a raise? Why or why not?

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Clarification To figure the percent for vertical examination we ought to ascertain percent of that t... View the full answer