The manager of a restaurant has just received an income statement report comparing the establishment's financial performance this year to last year's performance. After reviewing the Excel workbook report below, answer the questions that follow to help the manager better understand the operation and its financial performance:

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Questions:

2. What was the difference between the operation's food sales this year from the previous year?
   • Does this mark an improvement or a decline?
5. What was the difference between the operation's beverage sales this year from the previous year?
   • Does this mark an improvement or a decline?
8. What was the difference between the operation's total sales this year from the previous year?
   • Does this mark an improvement or a decline?
11. Did the operation spend more or less for food when comparing this year's expense to last year's expense?
    • By how much?
14. Did the operation spend more or less for beverages when comparing this year's expense to last year's expense?
    • By how much?
17. What was the amount of increase in management costs this year compared to last year?
19. What was the amount of increase in staff costs this year compared to last year?
21. What was the amount of increase in total labor costs this year compared to last year?
23. In what area or areas were this year's expense less than last year's expense?
25. What was the amount of profit made in the establishment this year?
    • What was the amount of profit made last year?
28. Why do you think the operation's cost of sales food this year is higher than last year?
30. Why do you think the operation's cost of sales beverage this year is lower than last year?

Response Prompt: Respond to at least two peers answers to questions 11 & 12.

Week 7 Discussion.xlsx

SALES	THIS YEAR	LAST YEAR
Food	$750,000.00	$690,000.00
Beverage	300,000.00	310,000.00
Total Sales	$1,050,000.00	$1,000,000.00
COST OF SALES
Food	$250,000.00	$225,000.00
Beverage	80,000.00	83,000.00
Total Cost of Sales	$330,000.00	$308,000.00
LABOR
Management	$55,000.00	$52,000.00
Staff	225,000.00	221,500.00
Employee benefits	85,000.00	83,500.00
Total Labor	$365,000.00	$357,000.00
Prime Cost	$695,000.00	$665,000.00
Other Controllable Expenses:
Legal/accounting	$1,750.00	$1,690.00
Music and entertainment	12,000.00	11,500.00
Marketing	12,400.00	12,000.00
Utility services	18,000.00	17,500.00
General and administrative	12,500.00	12,000.00
Repairs and maintenance	15,000.00	13,500.00
Total Other Controllable Expenses	$71,650.00	$68,190.00
Controllable Income	$283,350.00	$266,810.00
Non-controllable Expenses:
Rent	$95,000.00	$95,000.00
Depreciation	6,000.00	6,000.00
Licenses/permits	500	450
Leases	2,500.00	2,500.00
Total Non-Controllable Expenses	$104,000.00	$103,950.00
Operating Income	$179,350.00	$162,860.00
Interest Expense	$18,000.00	$19,000.00
Other (Income) expense	500	500
Income Before Income Taxes	$160,850.00	$143,360.00