Done Finals Premise FA20 Accounting Fir Premise: After a stellar February performance, your Chix and Waffles food truck sat in the garage for the duration of the lockdown. You will slowly re-start your business on October 16 and plan on increasing volume by November and December but still not at February levels. In February, you did 550 covers/day at an average of $8/plate. You operated the truck on weekdays at a FiDi location (5 days/wk) and did special events one day per weekend, 250 covers each at $15/plate. Assumptions: 1. For the second half of October, only 1/3 of the February daily covers will be achievable. No special events are anticipated. 2. The operation had 4 employees: Chef/Owner at an annual salary of $45,000 (that's you) $17/hr and 40 hrs/wk 3 cooks/assistants at 3. In October, only you, the chef and an assistant will re- start. Another cook will be added in November and by December, you will be staffed at pre-pandemic levels. 4. The truck is fully depreciated. 5. Food cost is anticipated to be at 45% in October and 42% for the months of November and December. This is attributed to the shortage in meat supplies. 6. Special events will be resumed in December. 7. Conservative forecast for October sales is 1/3 of February daily covers. November sales will be at 75% of February. December daily sales will be at November levels. 8. Paper supplies/disposables are budgeted at $1/cover. 9. Cleaning supplies may rise .5% due to more stringent sanitizing protocols. 10. Laundry is pegged at $2.75/day per employee. 11. Employee benefits are at 24% of salaries and wages + $140/mo per employee for Health Insurance and employee meals at $2.50 a day per employee. 12. Licenses and Miscellaneous Expenses are fixed. 9:44 Done Budget Finals Fa20 Accounting Fina... Sheet! Chis and Waffles Mouth Ending February 29, 2020 Sales Revenue FID Special Events Total Sales Revenue Cost of Sales Cost of Sales, Food Less Employee Meals Netcost of sales, food Total Net Cost of Sales Gross Margin (Profit) Month Ending October, 2020 15,000 19% 6666 Departmental Operating Expenses Salaries and wages Employee bene 365 Total payroll related expenses 15568 Paper Supplies, Disposables Cleaning supplies 103 Laundry 264 Licemes Min 106 Total Operating Expenses 2427% Net Income (Less) 33,993 33% 6466466666 % !!! AL Chix and Waffles Month Ending February 29, 2020 Sales Revenue % FIDE 88,000 85% Special Events 15,000 15% Total Sales Revenue 103,000 100% Cost of Sales Cost of Sales, Food 41,200 40% Less: Employee Meals 240 0% Net cost of sales, food 40,960 40% Total Net Cost of Sales 40,960 Gross Margin (Profit) 62,040 60% Departmental Operating Expenses Salaries and wages 11,910 12% Employee benefits 3,658 4% Total nalalated enantes 15 CAR 15% Sheet fbeel Sheet " Month Ending October, 2020 Month Ending November, 2020 Month Ending December, 2020 % % %