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 COURSESIncome StatementMonth 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$74,000 $95,000 $70,800 Expenses Landscaping$7,800 $14,200 $6,500 Wages43,900 ? 32,600 Repairs and maintenance5,600 2,600 4,500 Fuel3,100 3,000 1,970 Utilities1,800 3,000 1,600 Total expenses$62,200 $79,900 $47,170 Operating income$11,800 $15,100 ? A. Calculate the operating income percentage for each of the courses. Round your percentages to one decimal place.B.1. Perform a vertical analysis for each course. Round your percentages to one decimal place.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? Bluff Run Golf CoursesIncome StatementMonth Ending July 31, 2018Course BlueCourse BlackCourse GoldRevenuesGreens fees revenue$62,500$89,000$42,800Outings revenue6,00028,000Total revenue$74,000$95,000$70,800ExpensesLandscaping$7,800%$14,2000%$6,500%Wages43,900%%32,600%Repairs and maintenance5,600%2,600%4,500%Fuel3,100%3,000%1,970Utilities1,800%3,000%1,600%Total expenses$62200$79900$47170Operating income$11,800$15,100Operating 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? 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 COURSESIncome StatementMonth Ending July 31, 2018Blue Course Black Course Gold CourseRevenuesGreens fees revenue$62,500$89,000$42,800Outings revenue6,00028,000Total revenue$74,000$95,000$70,800ExpensesLandscaping$7,800$14,200$6,500Wages43,900?32,600Repairs and maintenance5,6002,6004,500Fuel3,1003,0001,970Utilities1,8003,0001,600Total expenses$62,200$79,900$47,170Operating income$11,800$15,100?A. Calculate the operating income percentage for each of the courses. Round your percentages to one decimal place.Course Blue%Course Black%Course Gold%В.1. Perform a vertical analysis for each course. Round your percentages to one decimal place.

Operating Income = Operating Income / Revenue × 100

Answered: A. Calculate the operating income…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

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	$42,800
Outings revenue	?		6,000	28,000
Total revenue	$74,000		$95,000	$70,800

Expenses
Landscaping	$7,800		$14,200	$6,500
Wages	43,900		?	32,600
Repairs and maintenance	5,600		2,600	4,500
Fuel	3,100		3,000	1,970
Utilities	1,800		3,000	1,600
Total expenses	$62,200		$79,900	$47,170

Operating income	$11,800		$15,100	?

A. Calculate the operating income percentage for each of the courses. Round your percentages to one decimal place.

1. Perform a vertical analysis for each course. Round your percentages to one decimal place.

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?

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
$74,000
$95,000
$70,800
Expenses
Landscaping
$7,800
%
$14,200
0%
$6,500
%
Wages
43,900
%
%
32,600
%
Repairs and maintenance
5,600
%
2,600
%
4,500
%
Fuel
3,100
%
3,000
%
1,970
Utilities
1,800
%
3,000
%
1,600
%
Total expenses
$62200
$79900
$47170
Operating income
$11,800
$15,100
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?

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
$74,000
$95,000
$70,800
Expenses
Landscaping
$7,800
$14,200
$6,500
Wages
43,900
?
32,600
Repairs and maintenance
5,600
2,600
4,500
Fuel
3,100
3,000
1,970
Utilities
1,800
3,000
1,600
Total expenses
$62,200
$79,900
$47,170
Operating income
$11,800
$15,100
?
A. Calculate the operating income percentage for each of the courses. Round your percentages to one decimal place.
Course Blue
%
Course Black
%
Course Gold
%
В.
1. Perform a vertical analysis for each course. Round your percentages to one decimal place.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions