Prepare the budgeting income statement as requested Nick Strizzi owns and operates a pizza delivery and take-out restaurant. In 2013, hesold 100,000 pizzas at an average selling price of $15.00. The cost to make each pizzais $3.00 for cheese, $2.50 for spices, and $3.75 for the crust and other ingredients.The annual cost of operating the business is as follows:RentSalariesInsuranceAdvertisingCar expensesThe income tax rate for 2013 was 18%. Nick is preparing a projected incomestatement for 2014. The planning assumptions are as follows:Increase in number of pizzas soldSelling price per pizzaIncrease in cost of cheeseIncrease in cost of spicesIncrease in cost of crust andother ingredientsAnnual rentIncrease in salariesIncrease in insurance costs$ 55,000$230,000$ 15,000$ 30,000$150,000Advertising costsIncrease in car expensesIncome tax rate10%$ 16.008%5%9%$65,00012%10%$35,00015%17% Learning ExercisesQuestions1. Prepare Nick Strizzi's statement of income for 2013 and 2014.2. Calculate Nick Strizzi's return on revenue ratios for 2013 and 2014.

Income Statement is that which provide the net result of the particular period. we can prepare the…

Answered: Nick Strizzi owns and operates a pizza…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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