Income Statement The Green Restaurant December 31, 20XX Food Revenue $47,500 Expenses Cost of Food Sales $16,415 Wages Expense $11,885 Supplies Expense $350 Utilities $1,200 Advertising $300 Depreciation Expense $160 Rent Expense $775 Interest Expense $120 Laundry Expense $560 Kitchen Fuel $150 Radio Advertising $1,200 Administrative Expense $2,200 Repairs and Maintenance $600 Total Expenses $35,915 Net Income $11,585

Balance Sheet The Green Restaurant December 31, 20XX Assets Cash $17,000 Food Inventory $1,500 Prepaid Rent $1,500 Equipment $10,000 Less: Accumulated Depreciation -$1,920 Total Assets $28,080 Liabilities and Owners' Equity Accounts Payable $1,000 Accrued Expenses Payable $4,000 Notes Payable $7,200 Accrued Interest $100 Mr. Green, Capital $15,780 Total Liabilities and Owners' Equity $28,080

Financial Statement: CVP Analysis Use the financial statements provided in the sidebar to compute the percentages for all items included in the income statement sheet as a percent of revenue. Remember that total revenue is always 100 percent. Be sure to use the formula function in Microsoft Excel to show the formulas for each of the percentage you compute. After completion, compute the following: CVP analysis with the following assumptions: Contribution margin Contribution margin ratio Current variable costs Fixed costs BEP In addition, analyze and compute the sales figure forecast in case the owner of The Green Restaurant wants to generate a 15 percent increase in net income before taxes are deducted for the same period next year. Save your assignment as W4_A2_lastname_firstname.xls. Submit your assignment to the Discussion Area on the next page. Use the Discussion Area on the next page to share the strategies you used for computing the sales figure forecast to generate 15 percent increase in net income before tax deduction for the next year. Comment on the postings submitted by at least two of your peers. In a Word document, forecast a strategy to increase the net income for the next financial year by 15 percent. Your strategy should help you to decide whether expenses on a particular item need to be decreased or more money can be invested in another item to get better net income. You can use Internet resources to understand the current market trends of the restaurant business and devise a feasible strategy. Forecasting strategies to increase income and overall revenue of an organization, based on percentage distribution of income statement items of the previous year, helps to populate better-budgeted income statements for the current year.