Bring up the income statement for Barnabys Hideaway on your Excel spread- sheet. It is listed on the disk as Exercise 2.1.

The following changes are anticipated in the coming year:

Bothfoodandbeveragesalesareexpectedtoincreaseby5percent.

Foodandbeveragecostpercentageswillremainthesame.

Salariesandwageswillincreaseby4percent.

The cost of employee benefits will increase, but will continue to be the

same percentage of salaries and wages.

Othercontrollablecostswillincreaseby$6,500.

Occupancycostswillincreaseby$2,000.

Interest and depreciation will remain the same.

			Exercise 2.1
			BARNABY'S HIDEAWAY
			INCOME STATEMENT
			YEAR ENDED DECEMBER 31, 200	BER 31, 200X
						Change	Upcoming
Sales							Year
	Food			$ 1,120,964.00
	Beverage			$ 465,200.00
	Total Sales				$ 1,586,164.00
Cost of Sales
	Food			$ 392,337.00
	Beverage			$ 102,344.00
	Total Cost of Sales				$ 494,681.00
Gross Profit					$ 1,091,483.00
Controllable Expenses
	Salaries and Wages			$ 396,541.00
	Employee Benefits			$ 99,135.00
	Other Controllable Expenses			$ 275,330.00
Total Controllable Expenses					$ 771,006.00
Income Before Occupancy costs		ancy Costs,			$ 320,477.00
Interest, Depreciation, and Income Taxes
Occupancy Costs				$ 75,230.00
Interest				$ 25,600.00
Depreciation				$ 79,099.00
Total					$ 179,929.00
Restaurant Profit					$ 140,548.00