Profit and Loss Statement based on the Information Below: Ran Hotel and Restaurant Sales: 1,500,900 Cost of Sales: 250,040 Gross Profit: Operating Expenses Salaries and Wages: 80,000 Operating Expense: 32,555 Music and Entertainment: 100,000 Marketing: 8,500 Repairs and Maintenance: 15,776 Administrative and General: 4,220 Depreciation: 9,899 Total Operating Expense: Operating Income: Interest: 1,500 Earning Before Income Taxes: Tax 10%: Net Income:

Reference:

Figure 3.2 Restaurant Income Statement Joshua's Restaurant Income Statement For the Year Ended December 31. 2010 SALES: Food 2.058.376 Beverage 482.830 Total Sales 2.541.206 COST OF SALES: Food 767.443 Beverage 96.566 Total Cost of Sales 864.009 GROSS PROFIT: Food 1.290.933 Beverage 386.264 Total Gross Profit 1.677.197 OPERATING EXPENSES: Salaries and Wages 714.079 Employee Benefits 111.813 Direct Operating Expenses 132.1 43 Music and Entertainment 7.624 Marketing 63.530 Utility Services 88.942 Repairs and Maintenance 35.577 Administrative and General 71.1 54 Occupancy 120.000 Depreciation 56,907 Total Operating Expenses 1.400.769 Operating Income 276.428 Interest 84.889 Income Before Income Taxes 191.539 Income Taxes 76.616 Net Income 114.923