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 $73,100 $95,000 $70,800 Expenses Landscaping $7,800 $14,200 $6,500 Wages 43,900 ? 32,500 Repairs and maintenance 5,600 2,600 4,300 Fuel 3,100 3,000 1,990 Utilities 1,800 3,000 1,650 Total expenses $62,200 $79,000 $46,940 Operating income $10,900 $16,000 ? A. Calculate the operating income percentage for each of the courses. Round your percentages to one decimal place. Course Blue fill in the blank e969470d405a007_1% Course Black fill in the blank e969470d405a007_2% Course Gold fill in the blank e969470d405a007_3% B. 1. Perform a vertical analysis for each course. Round your percentages to one decimal place. Bluff Run Golf CoursesIncome StatementMonth Ending July 31, 2018 Course Blue Course Black Course Gold Revenues Greens fees revenue $62,500 $89,000 $42,800 Outings revenue fill in the blank 5a21860e3f93fa3_1 6,000 28,000 Total revenue $73,100 $95,000 $70,800 Expenses Landscaping $7,800 fill in the blank 5a21860e3f93fa3_2% $14,200 fill in the blank 5a21860e3f93fa3_3% $6,500 fill in the blank 5a21860e3f93fa3_4% Wages 43,900 fill in the blank 5a21860e3f93fa3_5% fill in the blank 5a21860e3f93fa3_6 fill in the blank 5a21860e3f93fa3_7% 32,500 fill in the blank 5a21860e3f93fa3_8% Repairs and maintenance 5,600 fill in the blank 5a21860e3f93fa3_9% 2,600 fill in the blank 5a21860e3f93fa3_10% 4,300 fill in the blank 5a21860e3f93fa3_11% Fuel 3,100 fill in the blank 5a21860e3f93fa3_12% 3,000 fill in the blank 5a21860e3f93fa3_13% 1,990 fill in the blank 5a21860e3f93fa3_14% Utilities 1,800 fill in the blank 5a21860e3f93fa3_15% 3,000 fill in the blank 5a21860e3f93fa3_16% 1,650 fill in the blank 5a21860e3f93fa3_17% Total expenses $62200 $79000 $46940 Operating income $10,900 $16,000 $fill in the blank 5a21860e3f93fa3_18 Operating income % fill in the blank 5a21860e3f93fa3_19% fill in the blank 5a21860e3f93fa3_20% fill in the blank 5a21860e3f93fa3_21% 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 $73,100 $95,000 $70,800 Expenses Landscaping $7,800 $14,200 $6,500 Wages 43,900 ? 32,500 Repairs and maintenance 5,600 2,600 4,300 Fuel 3,100 3,000 1,990 Utilities 1,800 3,000 1,650 Total expenses $62,200 $79,000 $46,940 Operating income $10,900 $16,000 ? A. Calculate the operating income percentage for each of the courses. Round your percentages to one decimal place. Course Blue fill in the blank e969470d405a007_1% Course Black fill in the blank e969470d405a007_2% Course Gold fill in the blank e969470d405a007_3% B. 1. Perform a vertical analysis for each course. Round your percentages to one decimal place. Bluff Run Golf CoursesIncome StatementMonth Ending July 31, 2018 Course Blue Course Black Course Gold Revenues Greens fees revenue $62,500 $89,000 $42,800 Outings revenue fill in the blank 5a21860e3f93fa3_1 6,000 28,000 Total revenue $73,100 $95,000 $70,800 Expenses Landscaping $7,800 fill in the blank 5a21860e3f93fa3_2% $14,200 fill in the blank 5a21860e3f93fa3_3% $6,500 fill in the blank 5a21860e3f93fa3_4% Wages 43,900 fill in the blank 5a21860e3f93fa3_5% fill in the blank 5a21860e3f93fa3_6 fill in the blank 5a21860e3f93fa3_7% 32,500 fill in the blank 5a21860e3f93fa3_8% Repairs and maintenance 5,600 fill in the blank 5a21860e3f93fa3_9% 2,600 fill in the blank 5a21860e3f93fa3_10% 4,300 fill in the blank 5a21860e3f93fa3_11% Fuel 3,100 fill in the blank 5a21860e3f93fa3_12% 3,000 fill in the blank 5a21860e3f93fa3_13% 1,990 fill in the blank 5a21860e3f93fa3_14% Utilities 1,800 fill in the blank 5a21860e3f93fa3_15% 3,000 fill in the blank 5a21860e3f93fa3_16% 1,650 fill in the blank 5a21860e3f93fa3_17% Total expenses $62200 $79000 $46940 Operating income $10,900 $16,000 $fill in the blank 5a21860e3f93fa3_18 Operating income % fill in the blank 5a21860e3f93fa3_19% fill in the blank 5a21860e3f93fa3_20% fill in the blank 5a21860e3f93fa3_21% 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?

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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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	$73,100		$95,000	$70,800

Expenses
Landscaping	$7,800		$14,200	$6,500
Wages	43,900		?	32,500
Repairs and maintenance	5,600		2,600	4,300
Fuel	3,100		3,000	1,990
Utilities	1,800		3,000	1,650
Total expenses	$62,200		$79,000	$46,940

Operating income	$10,900		$16,000	?

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

Course Blue	fill in the blank e969470d405a007_1%
Course Black	fill in the blank e969470d405a007_2%
Course Gold	fill in the blank e969470d405a007_3%

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

Bluff Run Golf CoursesIncome StatementMonth Ending July 31, 2018

	Course Blue		Course Black		Course Gold
Revenues
Greens fees revenue	$62,500		$89,000		$42,800
Outings revenue	fill in the blank 5a21860e3f93fa3_1		6,000		28,000
Total revenue	$73,100		$95,000		$70,800
Expenses
Landscaping	$7,800	fill in the blank 5a21860e3f93fa3_2%	$14,200	fill in the blank 5a21860e3f93fa3_3%	$6,500	fill in the blank 5a21860e3f93fa3_4%
Wages	43,900	fill in the blank 5a21860e3f93fa3_5%	fill in the blank 5a21860e3f93fa3_6	fill in the blank 5a21860e3f93fa3_7%	32,500	fill in the blank 5a21860e3f93fa3_8%
Repairs and maintenance	5,600	fill in the blank 5a21860e3f93fa3_9%	2,600	fill in the blank 5a21860e3f93fa3_10%	4,300	fill in the blank 5a21860e3f93fa3_11%
Fuel	3,100	fill in the blank 5a21860e3f93fa3_12%	3,000	fill in the blank 5a21860e3f93fa3_13%	1,990	fill in the blank 5a21860e3f93fa3_14%
Utilities	1,800	fill in the blank 5a21860e3f93fa3_15%	3,000	fill in the blank 5a21860e3f93fa3_16%	1,650	fill in the blank 5a21860e3f93fa3_17%
Total expenses	$62200		$79000		$46940
Operating income	$10,900		$16,000		$fill in the blank 5a21860e3f93fa3_18
Operating income %	fill in the blank 5a21860e3f93fa3_19%		fill in the blank 5a21860e3f93fa3_20%		fill in the blank 5a21860e3f93fa3_21%

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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