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 $42,900 Outings revenue ? 6,000 29,000 Total revenue $74,100 $95,000 $71,900 Expenses Landscaping $7,800 $14,200 $6,300 Wages 43,900 ? 32,500 Repairs and maintenance 5,600 2,600 4,300 Fuel 3,100 3,000 1,980 Utilities 1,800 3,000 1,600 Total expenses $62,200 $79,500 $46,680 Operating income $11,900 $15,500 ? Question A. Calculate the operating income percentage for each of the courses. Round your percentages to one decimal place. Course Blue fill in the blank e448d00c304ef87_1% Course Black fill in the blank e448d00c304ef87_2% Course Gold fill in the blank e448d00c304ef87_3% .
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 $42,900 Outings revenue ? 6,000 29,000 Total revenue $74,100 $95,000 $71,900 Expenses Landscaping $7,800 $14,200 $6,300 Wages 43,900 ? 32,500 Repairs and maintenance 5,600 2,600 4,300 Fuel 3,100 3,000 1,980 Utilities 1,800 3,000 1,600 Total expenses $62,200 $79,500 $46,680 Operating income $11,900 $15,500 ? Question A. Calculate the operating income percentage for each of the courses. Round your percentages to one decimal place. Course Blue fill in the blank e448d00c304ef87_1% Course Black fill in the blank e448d00c304ef87_2% Course Gold fill in the blank e448d00c304ef87_3% .
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
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 | $42,900 | |||
| Outings revenue | ? | 6,000 | 29,000 | |||
| Total revenue | $74,100 | $95,000 | $71,900 | |||
| Expenses | ||||||
| Landscaping | $7,800 | $14,200 | $6,300 | |||
| Wages | 43,900 | ? | 32,500 | |||
| Repairs and maintenance | 5,600 | 2,600 | 4,300 | |||
| Fuel | 3,100 | 3,000 | 1,980 | |||
| Utilities | 1,800 | 3,000 | 1,600 | |||
| Total expenses | $62,200 | $79,500 | $46,680 | |||
| Operating income | $11,900 | $15,500 | ? |
Question
A. Calculate the operating income percentage for each of the courses. Round your percentages to one decimal place.
| Course Blue | fill in the blank e448d00c304ef87_1% |
| Course Black | fill in the blank e448d00c304ef87_2% |
| Course Gold | fill in the blank e448d00c304ef87_3% |
.
Question B.
1. Perform a vertical analysis for each course. Round your percentages to one decimal place.
| Course Blue | Course Black | Course Gold | ||||
| Revenues | ||||||
| Greens fees revenue | $62,500 | $89,000 | $42,900 | |||
| Outings revenue | fill in the blank a4be8a082fc101a_1 | 6,000 | 29,000 | |||
| Total revenue | $74,100 | $95,000 | $71,900 | |||
| Expenses | ||||||
| Landscaping | $7,800 | fill in the blank a4be8a082fc101a_2% | $14,200 | fill in the blank a4be8a082fc101a_3% | $6,300 | fill in the blank a4be8a082fc101a_4% |
| Wages | 43,900 | fill in the blank a4be8a082fc101a_5% | fill in the blank a4be8a082fc101a_6 | fill in the blank a4be8a082fc101a_7% | 32,500 | fill in the blank a4be8a082fc101a_8% |
| Repairs and maintenance | 5,600 | fill in the blank a4be8a082fc101a_9% | 2,600 | fill in the blank a4be8a082fc101a_10% | 4,300 | fill in the blank a4be8a082fc101a_11% |
| Fuel | 3,100 | fill in the blank a4be8a082fc101a_12% | 3,000 | fill in the blank a4be8a082fc101a_13% | 1,980 | fill in the blank a4be8a082fc101a_14% |
| Utilities | 1,800 | fill in the blank a4be8a082fc101a_15% | 3,000 | fill in the blank a4be8a082fc101a_16% | 1,600 | fill in the blank a4be8a082fc101a_17% |
| Total expenses | $62200 | $79500 | $46680 | |||
| Operating income | $11,900 | $15,500 | $fill in the blank a4be8a082fc101a_18 | |||
| Operating income % | fill in the blank a4be8a082fc101a_19% | fill in the blank a4be8a082fc101a_20% | fill in the blank a4be8a082fc101a_21% |
1. Examine the amounts in the vertical analysis carefully. What expense amounts are different relative to the other courses? What conclusion can you make from this?
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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