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5. Calculate minimum average check projections for both meal periods based on the budgeted income statement and other information given. What concerns do you have regarding these projections? Discuss two strategies to address these concerns. What additional information should you consider? What would you recommend average check goals to be? Why? 11 11 Hudson Valley Restaurant and Bar Income Statement Horizontal Analysis - Year End 2018 and 2019 YE 2018 YE 2019 SS Change % Change $995,000 S302,500 $1.297.500 S1,115,000 $351,600 $1,466,600 $352.500 $95,000 $447,500 $382,560 $830,060 $345.200 S127,000 $472.200 S564,310 $1,036,510 Sales Revenue Food Revenue Beverage Revenue Total Sales Revenue Cost of Sales Food COS Beverage COS Total Cost of Sales Labor Expense Prime Cost Controllable Expenses Operating Supplies Expense Administrative and General Expense Advertising and Promotion Expense Repairs and Maintenance Utilities Total Controllable Expenses Controllable Income Non-Controllable Expenses Depreciation Occupancy Costs Interest Expense Total Non-Controllable Expenses Operating Income $20.100 $10.200 $4,200 $2.900 S14,100 $51.500 S415.940 S25.300 $11.405 $4,600 $1.650 $12.545 $55.500 $374,590 $10,000 SI52,000 $5,800 S167,800 S248,140 $10,000 SI52,000 $5,200 S167,200 $207,390 12 Hudson Valley Restaurant and Bar Income Statement Vertical Analysis - Year End 2018 and 2019 YE 2018 YE 2019 $995,000 S302,500 $1.297,500 S1.115,000 $351,600 $1.466,600 S352.500 $95,000 $447.500 S382,560 5830,060 S345,200 S127,000 $472,200 S564,310 $1,036,510 Sales Revenue Food Revenue Beverage Revenue Total Sales Revenue Cost of Sales Food COS Beverage COS Total Cost of Sales Labor Expense Prime Cost Controllable Expenses Operating Supplies Expense Administrative and General Expense Advertising and Promotion Expense Repairs and Maintenance Utilities Total Controllable Expenses Controllable Income Non-Controllable Expenses Depreciation Occupancy Costs Interest Expense Total Non-Controllable Expenses Operating Income $25.300 $11.405 $4,600 $20,100 $10,200 $4,200 $2.900 S14,100 $51,500 S415.940 $1,650 S12.545 $55,500 $374,590 $10,000 S152.000 S5,800 $167.800 S248,140 $10,000 $152,000 $5,200 $167,200 $207,390 13 Hudson Valley Restaurant and Bar Partial Balance Sheet Horizontal Analysis YE 2018 YE 2019 Current Assets Cash Credit Card Receivables Accounts Receivable Marketable Securities Prepaid Expenses Food Inventory Beverage Inventory Total Current Assets Current Liabilities Accounts Payable Accrued Expenses Payable Taxes Payable Current Mortgage Payable Total Current Liabilities S48.200 $2,740 5890 SI 200 $3,900 $6,900 $3,620 $67,450 $31,600 53.100 $1.475 $18,000 $5,400 $4,700 $2.960 567.235 S10.900 $3,250 $22.200 $13.200 S49,550 $9.400 $2.100 S24,300 S11,600 S47.400 5. Calculate minimum average check projections for both meal periods based on the budgeted income statement and other information given. What concerns do you have regarding these projections? Discuss two strategies to address these concerns. What additional information should you consider? What would you recommend average check goals to be? Why? 11 11 Hudson Valley Restaurant and Bar Income Statement Horizontal Analysis - Year End 2018 and 2019 YE 2018 YE 2019 SS Change % Change $995,000 S302,500 $1.297.500 S1,115,000 $351,600 $1,466,600 $352.500 $95,000 $447,500 $382,560 $830,060 $345.200 S127,000 $472.200 S564,310 $1,036,510 Sales Revenue Food Revenue Beverage Revenue Total Sales Revenue Cost of Sales Food COS Beverage COS Total Cost of Sales Labor Expense Prime Cost Controllable Expenses Operating Supplies Expense Administrative and General Expense Advertising and Promotion Expense Repairs and Maintenance Utilities Total Controllable Expenses Controllable Income Non-Controllable Expenses Depreciation Occupancy Costs Interest Expense Total Non-Controllable Expenses Operating Income $20.100 $10.200 $4,200 $2.900 S14,100 $51.500 S415.940 S25.300 $11.405 $4,600 $1.650 $12.545 $55.500 $374,590 $10,000 SI52,000 $5,800 S167,800 S248,140 $10,000 SI52,000 $5,200 S167,200 $207,390 12 Hudson Valley Restaurant and Bar Income Statement Vertical Analysis - Year End 2018 and 2019 YE 2018 YE 2019 $995,000 S302,500 $1.297,500 S1.115,000 $351,600 $1.466,600 S352.500 $95,000 $447.500 S382,560 5830,060 S345,200 S127,000 $472,200 S564,310 $1,036,510 Sales Revenue Food Revenue Beverage Revenue Total Sales Revenue Cost of Sales Food COS Beverage COS Total Cost of Sales Labor Expense Prime Cost Controllable Expenses Operating Supplies Expense Administrative and General Expense Advertising and Promotion Expense Repairs and Maintenance Utilities Total Controllable Expenses Controllable Income Non-Controllable Expenses Depreciation Occupancy Costs Interest Expense Total Non-Controllable Expenses Operating Income $25.300 $11.405 $4,600 $20,100 $10,200 $4,200 $2.900 S14,100 $51,500 S415.940 $1,650 S12.545 $55,500 $374,590 $10,000 S152.000 S5,800 $167.800 S248,140 $10,000 $152,000 $5,200 $167,200 $207,390 13 Hudson Valley Restaurant and Bar Partial Balance Sheet Horizontal Analysis YE 2018 YE 2019 Current Assets Cash Credit Card Receivables Accounts Receivable Marketable Securities Prepaid Expenses Food Inventory Beverage Inventory Total Current Assets Current Liabilities Accounts Payable Accrued Expenses Payable Taxes Payable Current Mortgage Payable Total Current Liabilities S48.200 $2,740 5890 SI 200 $3,900 $6,900 $3,620 $67,450 $31,600 53.100 $1.475 $18,000 $5,400 $4,700 $2.960 567.235 S10.900 $3,250 $22.200 $13.200 S49,550 $9.400 $2.100 S24,300 S11,600 S47.400