3. Scott Thatcher is the owner of the 50 Yard Line Lounge. He believes that his business is good, and from what he reads. his profit margins are reasonable. But Scott wants to know more about the financial performance of his business. Help Scott complete and analyze the following income statement prepared at the end of last year, as well as the additional information provided, and then answer the questions Scott is pondering, 50 Yard Line Lounge Income Statement For the Year Ended December 31, Last Year SALES Food Beverage Total Sales $102,556 $699,505 COST OF SALES Food Beverages Total Cost of Sales $26,510 $151.000 LABOR Management Stall Employee Benefits Total Labor $58,500 $100,000 $3,500 (continual) 486 Chapter 12 Copital investmen wand PRIME COST $61.500 OTHER CONTROLLABLE EXPENSES Direct Operating Expres Music and Entertainment Marketing Us Administrative and General Expenses Repairs and Maintenance Total Other Controllable Expenses $18.250 $26.100 $108,100 $5.325 CONTROLLABLE INCOME $24.500 $0 $5.650 NON-CONTROLLABLE EXPENSES Occupancy Costs Equipment Leases Depreciation and Amortization Total Non-Controllable Expenses RESTAURANT OPERATING INCOME $84,889 Interest Expense INCOME BEFORE INCOME TAXES $17,000 Income Taxes NET INCOME a. What was Scott's before tax income? b. What was Scott's after tax net income? c. Assume that Scott's investment in the Lounge was $750,000. Calculate Scott's before tax ROL. Money Earned on Funds Invested Funds Invested ROI $750,000 d. Assume again that Scott's investment in the lounge was $750,000. Calculate his after-tax ROL Money Earned on Funds Invested Funds Invested ROI