Day Street Deli's owner is disturbed by the poor profit performance of his ice cream counter. He has prepared the following prof analysis for the year just ended. Sales Less: Cost of food Gross profit Less: Operating expenses: Wages of counter personnel Paper products (e.g., napkins) Utilities (allocated) Depreciation of counter equipment and furnishings Depreciation of building (allocated) Deli manager's salary (allocated) Total Loss on ice cream counter Required: Correct the owner's profit analysis for the year just ended. Less: Operating expenses Total $ 16,000 6,000 3,900 3,500 6,000 4,000 $ 65,000 30,000 $ 35,000 39,400 $ (4,400)
Day Street Deli's owner is disturbed by the poor profit performance of his ice cream counter. He has prepared the following prof analysis for the year just ended. Sales Less: Cost of food Gross profit Less: Operating expenses: Wages of counter personnel Paper products (e.g., napkins) Utilities (allocated) Depreciation of counter equipment and furnishings Depreciation of building (allocated) Deli manager's salary (allocated) Total Loss on ice cream counter Required: Correct the owner's profit analysis for the year just ended. Less: Operating expenses Total $ 16,000 6,000 3,900 3,500 6,000 4,000 $ 65,000 30,000 $ 35,000 39,400 $ (4,400)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Day Street Deli's owner is disturbed by the poor profit performance of his ice cream counter. He has prepared the following profit
analysis for the year just ended.
Sales
Less: Cost of food
Gross profit
Less: Operating expenses:
Wages of counter personnel.
Paper products (e.g., napkins)
Utilities (allocated)
Depreciation of counter equipment and furnishings
Depreciation of building (allocated)
Deli manager's salary (allocated)
Total
Loss on ice cream counter
Required:
Correct the owner's profit analysis for the year just ended.
Less: Operating expenses
Total
$ 16,000
6,000
3,900
3,500
6,000
4,000
$ 65,000
30,000
$ 35,000
39,400
$(4,400)
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