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Analyze the business expenses Income Statement 2019 2018 2017 Revenues Restaurant $180,000 $187,000 $197,000 Bar 67,000 57,000 47,000 Total 247,000 244,000 244,000 Expenses Restaurant $130,000
- Analyze the business expenses
-
Income Statement
2019
2018
2017
Revenues
Restaurant
$180,000
$187,000
$197,000
Bar
67,000
57,000
47,000
Total
247,000
244,000
244,000
Expenses
Restaurant
$130,000
$125,000
$120,000
Bar
50,000
48,000
47,000
Total
180,000
173,000
167,000
Net Income
67,000
71,000
77,000
- Comparative Trend Analysis Calculate the percent change from year to year in expenses in the table below
- Percent change = (current year/past year 1) X 100
| Income Statement | |||
|
| 2019 | 2018 | 2017 |
| Revenues |
|
|
|
| Restaurant | $180,000 | $187,000 | $197,000 |
| Bar | 67,000 | 57,000 | 47,000 |
| Total | 247,000 | 244,000 | 244,000 |
|
|
|
|
|
| Expenses |
|
|
|
| Restaurant | $130,000 | $125,000 | $120,000 |
| Bar | 50,000 | 48,000 | 47,000 |
| Total | 180,000 | 173,000 | 167,000 |
| Net Income | 67,000 | 71,000 | 77,000 |
- Percent change = (current year/past year 1) X 100
| 2018 to 2019 | 2017 to 2018 | |
| Expenses | Percent Change | Percent Change |
| Restaurant | ||
| Bar | ||
| Total |
- Common Size Analysis
- For each item, divide by total revenue to get a percent
- For example, 2017 Restaurant Expense Percent = 120,000/244,000 X 100
- For each item, divide by total revenue to get a percent
| 2019 | 2018 | 2017 | |
| Expenses | Percent of Total | Percent of Total | Percent of Total |
| Restaurant | 49.18% | ||
| Bar |
- What do the two tables above show you regarding expenses?
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