P3.7 Two successive monthly income statements for the food department of a

motor lodge are shown here. Present the income statements in a compara- tive horizontal analysis format and comment on any significant differences.

Sales Revenue August September

Room service $ 11,300 $ 9,000

Dining room 75,900 63,700

Barlounge 5,500 4,100

Coffee shop 53,400 48,700

Banquets 66,200 70,500

Total Sales Revenue $212,300 $196,000

Cost of sales ( 68,100) ( 63,900)

Gross Margin $144,200 $132,100

Operating Expenses

Wages and salaries $ 75,800 $ 71,100

Employee benefits 11,400 10,700

Linen and laundry 3,200 3,000

China, glassware, & tableware 5,300 4,900

Miscellaneous operating costs 4,900 4,700

Operating supplies 9,600 8,800

Total Operating Expenses ( 110,200) ( 103,200)

Departmental Operating Income $ 34,000 $ 28,900

P3.8 Using the information presented in P3.7, present in proper format a

common-size vertical income statement analysis. Comment on any signif- icant results noted.