he following information is from Bluff Run Golf Courses. The company runs three courses and the July income statement for each course is as follows: BLUFF RUN GOLF COURSES Income Statement Month Ending July 31, 2018 Blue Course Black Course Gold Course Revenues Greens fees revenue $62,500 $89,000 $42,700 Outings revenue ?
he following information is from Bluff Run Golf Courses. The company runs three courses and the July income statement for each course is as follows: BLUFF RUN GOLF COURSES Income Statement Month Ending July 31, 2018 Blue Course Black Course Gold Course Revenues Greens fees revenue $62,500 $89,000 $42,700 Outings revenue ?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
The following information is from Bluff Run Golf Courses. The company runs three courses and the July income statement for each course is as follows:
| BLUFF RUN GOLF COURSES | ||||||
| Income Statement | ||||||
| Month Ending July 31, 2018 | ||||||
| Blue Course | Black Course | Gold Course | ||||
| Revenues | ||||||
| Greens fees revenue | $62,500 | $89,000 | $42,700 | |||
| Outings revenue | ? | 6,000 | 27,000 | |||
| Total revenue | $73,300 | $95,000 | $69,700 | |||
| Expenses | ||||||
| Landscaping | $7,800 | $14,200 | $6,500 | |||
| Wages | 43,900 | ? | 32,700 | |||
| Repairs and maintenance | 5,600 | 2,600 | 4,300 | |||
| Fuel | 3,100 | 3,000 | 1,990 | |||
| Utilities | 1,800 | 3,000 | 1,600 | |||
| Total expenses | $62,200 | $79,000 | $47,090 | |||
| Operating income | $11,100 | $16,000 | ? |
A. Calculate the operating income percentage for each of the courses. Round your percentages to one decimal place.
| Course Blue | fill in the blank e1586f01df93ffe_1% |
| Course Black | fill in the blank e1586f01df93ffe_2% |
| Course Gold | fill in the blank e1586f01df93ffe_3% |
B.
1. Perform a vertical analysis for each course. Round your percentages to one decimal place.
| Bluff Run Golf Courses Income Statement |
||||||
| Month Ending July 31, 2018 | ||||||
| Course Blue | Course Black | Course Gold | ||||
| Revenues | ||||||
| Greens fees revenue | $62,500 | $89,000 | $42,700 | |||
| Outings revenue | fill in the blank 2f990f00f01505f_1 | 6,000 | 27,000 | |||
| Total revenue | $73,300 | $95,000 | $69,700 | |||
| Expenses | ||||||
| Landscaping | $7,800 | fill in the blank 2f990f00f01505f_2% | $14,200 | fill in the blank 2f990f00f01505f_3% | $6,500 | fill in the blank 2f990f00f01505f_4% |
| Wages | 43,900 | fill in the blank 2f990f00f01505f_5% | fill in the blank 2f990f00f01505f_6 | fill in the blank 2f990f00f01505f_7% | 32,700 | fill in the blank 2f990f00f01505f_8% |
| Repairs and maintenance | 5,600 | fill in the blank 2f990f00f01505f_9% | 2,600 | fill in the blank 2f990f00f01505f_10% | 4,300 | fill in the blank 2f990f00f01505f_11% |
| Fuel | 3,100 | fill in the blank 2f990f00f01505f_12% | 3,000 | fill in the blank 2f990f00f01505f_13% | 1,990 | fill in the blank 2f990f00f01505f_14% |
| Utilities | 1,800 | fill in the blank 2f990f00f01505f_15% | 3,000 | fill in the blank 2f990f00f01505f_16% | 1,600 | fill in the blank 2f990f00f01505f_17% |
| Total expenses | $62200 | $79000 | $47090 | |||
| Operating income | $11,100 | $16,000 | $fill in the blank 2f990f00f01505f_18 | |||
| Operating income % | fill in the blank 2f990f00f01505f_19% | fill in the blank 2f990f00f01505f_20% | fill in the blank 2f990f00f01505f_21% |
2. Based on a vertical analysis of each course, which accounts would you want to investigate further?
C. Which method of analysis (using a dollar value or percentage) is most relevant and/or useful? Why?
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Transcribed Image Text:The following information is from Bluff Run Golf Courses. The company runs three courses and the July income statement for each course is as follows:
BLUFF RUN GOLF COURSES
Income Statement
Month Ending July 31, 2018
Blue Course
Black Course Gold Course
Revenues
Greens fees revenue
$62,500
$89,000
$42,700
Outings revenue
?
6,000
27,000
Total revenue
$73,300
$95,000
$69,700
Expenses
Landscaping
$7,800
$14,200
$6,500
Wages
43,900
?
32,700
Repairs and maintenance
5,600
2,600
4,300
Fuel
3,100
3,000
1,990
Utilities
1,800
3,000
1,600
Total expenses
$62,200
$79,000
$47,090
Operating income
$11,100
$16,000
?
A. Calculate the operating income percentage for each of the courses. Round your percentages to one decimal place.
Course Blue
Course Black
%
Course Gold
Transcribed Image Text:В.
1. Perform a vertical analysis for each course. Round your percentages to one decimal place.
Bluff Run Golf Courses
Income Statement
Month Ending July 31, 2018
Course Blue
Course Black
Course Gold
Revenues
Greens fees revenue
$62,500
$89,000
$42,700
Outings revenue
6,000
27,000
Total revenue
$73,300
$95,000
$69,700
Expenses
Landscaping
$7,800
%
$14,200
$6,500
%
Wages
43,900
%
32,700
%
Repairs and maintenance
5,600
%
2,600
%
4,300
Fuel
3,100
%
3,000
%
1,990
Utilities
1,800
%
3,000
%
1,600
%
Total expenses
$62200
$79000
$47090
Operating income
$11,100
$16,000
$
Operating income %
%
%
%
2. Based on a vertical analysis of each course, which accounts would you want to investigate further?
C. Which method of analysis (using a dollar value or percentage) is most relevant and/or useful? Why?
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