Question
Slide one will analyse and present the important information found in the Income Statement for the caf, Hills Caf. What to include and discuss in
Slide one will analyse and present the important information found in the Income Statement for the caf, Hills Caf.
What to include and discuss in your slide:
An analysis of the different types of sales (Hint: use a pie chart to indicate what type of sales is biggest etc.).
A similar analysis for the operating expenses.
Lastly, discuss how gross profit, operating profit (EBIT), profit before tax and net income was calculated and if these numbers are looking good for Hills Caf.
Include a comment to indicate if the business can meet its interest payments easily as you are presenting this information to a lender.
The monthly income statement for Hills Caf is as below:
Income Statement For the month ended June 30, 2022 | ||
Revenue | $ | $ |
Coffee sales | 24,000 |
|
Dessert sales | 4,000 |
|
Food sales | 9,000 |
|
Bottled Drinks | 2,000 |
|
Bean Sales | 4,500 |
|
Total Revenue |
| 43,500 |
|
|
|
Cost of Goods Sold |
| 21,000 |
|
|
|
Gross Profit |
| 22,500 |
|
|
|
Operating Expense |
|
|
Advertising | 700 |
|
Wages & Salaries | 3,000 |
|
License fees | 400 |
|
Credit Card charges | 320 |
|
Insurance | 500 |
|
Rent | 4,000 |
|
Telephone & Internet | 150 |
|
Security | 600 |
|
Bad debts | 500 |
|
Total Expenses |
| 10,170 |
Operating Profit (EBIT) |
| 12,330 |
Interest and bank charges |
| 2500 |
Profit before tax (EBT) |
| 9,830 |
Taxes |
| 2,500 |
Net Income |
| $7,330 |
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