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 $42,800 Outings revenue 6,000 28,000 Total revenue $73,200 $95,000 $70,800 Expenses Landscaping $7,800 % $14,200 % $6,400 % Wages 43,900 % % 32,700 % Repairs and maintenance 5,600 2,600 % 4,400 % Fuel 3,100 % 3,000 % 1,990 % Utilities 1,800 % 3,000 1,650 % Total expenses $62200 $78100 $47140 Operating income $11,000 $16,900 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?
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 $42,800 Outings revenue 6,000 28,000 Total revenue $73,200 $95,000 $70,800 Expenses Landscaping $7,800 % $14,200 % $6,400 % Wages 43,900 % % 32,700 % Repairs and maintenance 5,600 2,600 % 4,400 % Fuel 3,100 % 3,000 % 1,990 % Utilities 1,800 % 3,000 1,650 % Total expenses $62200 $78100 $47140 Operating income $11,000 $16,900 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?
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 41E
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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 | $42,800 | |||
Outings revenue | ? | 6,000 | 28,000 | |||
Total revenue | $73,200 | $95,000 | $70,800 | |||
Expenses | ||||||
Landscaping | $7,800 | $14,200 | $6,400 | |||
Wages | 43,900 | ? | 32,700 | |||
Repairs and maintenance | 5,600 | 2,600 | 4,400 | |||
Fuel | 3,100 | 3,000 | 1,990 | |||
Utilities | 1,800 | 3,000 | 1,650 | |||
Total expenses | $62,200 | $78,100 | $47,140 | |||
Operating income | $11,000 | $16,900 | ? |
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