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$73,200 $95,000 $70,800 Expenses Landscaping$7,800 $14,200 $6,400 Wages43,900 ? 32,700 Repairs and maintenance5,600 2,600 4,400 Fuel3,100 3,000 1,990 Utilities1,800 3,000 1,650 Total expenses$62,200 $78,100 $47,140 Operating income$11,000 $16,900 ? 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.Bluff Run Golf CoursesIncome StatementMonth Ending July 31, 2018Course BlueCourse BlackCourse GoldRevenuesGreens fees revenue$62,500$89,000$42,800Outings revenue6,00028,000Total revenue$73,200$95,000$70,800ExpensesLandscaping$7,800%$14,200%$6,400%Wages43,900%%32,700%Repairs and maintenance5,600%2,600%4,400%Fuel3,100%3,0000%1,9900%Utilities1,800%3,000%1,650%Total expenses$62200$78100$47140Operating income$11,000$16,900Operating 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?%24

Income Statement - It is a financial statement which shows the profits and loss of the company. It…

Answered: В. 1. Perform a vertical analysis for…

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	$73,200		$95,000	$70,800

Expenses
Landscaping	$7,800		$14,200	$6,400
Wages	43,900		?	32,700
Repairs and maintenance	5,600		2,600	4,400
Fuel	3,100		3,000	1,990
Utilities	1,800		3,000	1,650
Total expenses	$62,200		$78,100	$47,140

Operating income	$11,000		$16,900	?

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.
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
$73,200
$95,000
$70,800
Expenses
Landscaping
$7,800
%
$14,200
%
$6,400
%
Wages
43,900
%
%
32,700
%
Repairs and maintenance
5,600
%
2,600
%
4,400
%
Fuel
3,100
%
3,000
0%
1,990
0%
Utilities
1,800
%
3,000
%
1,650
%
Total expenses
$62200
$78100
$47140
Operating income
$11,000
$16,900
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?
%24

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