Question: Slide one will analyse and present the important information found in the Income Statement for the caf, Hills Caf. What to include and discuss in

Slide one will analyse and present the important information found in the Income Statement for the caf, Hills Caf.

What to include and discuss in your slide:

An analysis of the different types of sales (Hint: use a pie chart to indicate what type of sales is biggest etc.).

A similar analysis for the operating expenses.

Lastly, discuss how gross profit, operating profit (EBIT), profit before tax and net income was calculated and if these numbers are looking good for Hills Caf.

Include a comment to indicate if the business can meet its interest payments easily as you are presenting this information to a lender.

The monthly income statement for Hills Caf is as below:

Income Statement

For the month ended June 30, 2022

Revenue

$

$

Coffee sales

24,000

Dessert sales

4,000

Food sales

9,000

Bottled Drinks

2,000

Bean Sales

4,500

Total Revenue

43,500

Cost of Goods Sold

21,000

Gross Profit

22,500

Operating Expense

Advertising

700

Wages & Salaries

3,000

License fees

400

Credit Card charges

320

Insurance

500

Rent

4,000

Telephone & Internet

150

Security

600

Bad debts

500

Total Expenses

10,170

Operating Profit (EBIT)

12,330

Interest and bank charges

2500

Profit before tax (EBT)

9,830

Taxes

2,500

Net Income

$7,330

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!