chap The Wheatfield Valley it is managed by Cyrus M management. Last year id Valley golf course has been owned by the Miley family for two generations. Currently, ged by Cyrus Miley, a graduate of State University, where he majored in hospitality oment. Last year was a good one for the golf course. Now Cyrus is preparing next year's erating budget. He has gathered a great deal of information to help him prepare the best budget possible. After carefully analyzing that information, Cyrus predicts that next year the course will experience: A5 percent increase in food sales A 3 percent increase in beverage sales No change in food or beverage product cost percentage Salaries and wages (management and staff) that will increase 4.5 percent Employee benefits that will increase 10 percent An increase of 2.5 percent in each Other Expense category No change in Occupancy Costs and Depreciation & Amortization Interest payments of $1,000 per month Tax payments that are estimated to be 25 percent of income before income taxes |Calculate this year's operating percentages for the food and beverage department on the budget worksheet provided, and then using his assumptions about next year, create Cyrus's new operating budget in dollars and percentages. The Wheatfield Valley Golf Course F&B Department Budget Worksheet for Next Year This Year Actual $ Next Year Budget $ $173,250.00 56,750.00 $58,250.00 9,375.00 $9,000.00 27,250.00 6,200.00 SALES Food Beverage Total Sales COST OF SALES Food Beverages Total Cost of Sales LABOR Management Staff Employee Benefits Total Labor PRIME COST |OTHER CONTROLLABLE EXPENSES Direct Operating Expenses Utilities General & Administrative Expenses Repairs & Maintenance Total Other Controllable Expenses CONTROLLABLE INCOME NON-CONTROLLABLE EXPENSES Occupancy Costs Equipment Leases Depreciation & Amortization Total Non-Controllable Expenses RESTAURANT OPERATING INCOME Interest Expense INCOME BEFORE INCOME TAXES income Taxes NET INCOME $13,200.00 5,975.00 6,375.00 1,750.00 $15,000.00 0.00 4,200.00 $12,000.00 0.00