ORevenuesGreen fees revenueEvents revenueTotal revenueExpensesLandscapingWagesRepairs and maintenanceFuelUtilitiesTotal expensesOperating incomeOperating income (%)Income StatementMonth Ending July 31, 2020$$Hills Golf CourseEast Course West Course North Course62,500 $73,500 $Problem 1 of 27,800 $89,000 $6,00095,000 $6,40043,90032,6005,6002,6004,4003,1003,0001,9801,8003,0001,650$ 62,200 $ 79,100 $ 47,03014,200 $42,80028,00070,800A. Calculate the operating income and percentage for each of the courses. Fill in any blank (grey) cells.B. Perform a vertical analysis for each course. Based on your analysis, what accounts would you want toinvestigate further? How might management utilize this information?C. Which method of analysis (using a dollar value or percentage) is most relevant and/or useful? Explain.Problem 2 of 1

Verticle ananlysis is very important analytical technique. The financial…

Answered: Calculate the operating income a Do

Business

Accounting

Calculate the operating income a Do

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

O
Revenues
Green fees revenue
Events revenue
Total revenue
Expenses
Landscaping
Wages
Repairs and maintenance
Fuel
Utilities
Total expenses
Operating income
Operating income (%)
Income Statement
Month Ending July 31, 2020
$
$
Hills Golf Course
East Course West Course North Course
62,500 $
73,500 $
Problem 1 of 2
7,800 $
89,000 $
6,000
95,000 $
6,400
43,900
32,600
5,600
2,600
4,400
3,100
3,000
1,980
1,800
3,000
1,650
$ 62,200 $ 79,100 $ 47,030
14,200 $
42,800
28,000
70,800
A. Calculate the operating income and percentage for each of the courses. Fill in any blank (grey) cells.
B. Perform a vertical analysis for each course. Based on your analysis, what accounts would you want to
investigate further? How might management utilize this information?
C. Which method of analysis (using a dollar value or percentage) is most relevant and/or useful? Explain.
Problem 2 of 1

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Current Attempt in Progress Tamarisk Company reports the following costs and expenses in May. Factory utilities Depreciation on factory equipment Depreciation on delivery trucks Indirect factory labor Indirect materials Direct materials used Factory manager's salary From the information: $14,800 12,120 3,840 47,120 77,440 132,480 8,000 Direct labor Sales salaries Property taxes on factory building Repairs to office equipment Factory repairs Advertising Office supplies used $66,480 44,320 2,400 1,280 1,920 14,400 2,510