Question
The following information is from Bluff Run Golf Courses. The company runs three courses and the July income statement for each course is as follows:
The following information is from Bluff Run Golf Courses. The company runs three courses and the July income statement for each course is as follows:
| BLUFF RUN GOLF COURSES | ||||||
| Income Statement | ||||||
| Month Ending July 31, 2018 | ||||||
| Blue Course | Black Course | Gold Course | ||||
| Revenues | ||||||
| Greens fees revenue | $62,500 | $89,000 | $42,700 | |||
| Outings revenue | ? | 6,000 | 28,000 | |||
| Total revenue | $74,400 | $95,000 | $70,700 | |||
| Expenses | ||||||
| Landscaping | $7,800 | $14,200 | $6,400 | |||
| Wages | 43,900 | ? | 32,600 | |||
| Repairs and maintenance | 5,600 | 2,600 | 4,300 | |||
| Fuel | 3,100 | 3,000 | 1,980 | |||
| Utilities | 1,800 | 3,000 | 1,700 | |||
| Total expenses | $62,200 | $79,400 | $46,980 | |||
| Operating income | $12,200 | $15,600 | ? | |||
A. Calculate the operating income percentage for each of the courses. Round your percentages to one decimal place.
| Course Blue | fill in the blank e0b94702efebfc5_1% |
| Course Black | fill in the blank e0b94702efebfc5_2% |
| Course Gold | fill in the blank e0b94702efebfc5_3% |
B.
1. Perform a vertical analysis for each course. Round your percentages to one decimal place.
| Bluff Run Golf Courses Income Statement | ||||||
| Month Ending July 31, 2018 | ||||||
| Course Blue | Course Black | Course Gold | ||||
| Revenues | ||||||
| Greens fees revenue | $62,500 | $89,000 | $42,700 | |||
| Outings revenue | fill in the blank 6470e5fa4fddfbb_1 | 6,000 | 28,000 | |||
| Total revenue | $74,400 | $95,000 | $70,700 | |||
| Expenses | ||||||
| Landscaping | $7,800 | fill in the blank 6470e5fa4fddfbb_2% | $14,200 | fill in the blank 6470e5fa4fddfbb_3% | $6,400 | fill in the blank 6470e5fa4fddfbb_4% |
| Wages | 43,900 | fill in the blank 6470e5fa4fddfbb_5% | fill in the blank 6470e5fa4fddfbb_6 | fill in the blank 6470e5fa4fddfbb_7% | 32,600 | fill in the blank 6470e5fa4fddfbb_8% |
| Repairs and maintenance | 5,600 | fill in the blank 6470e5fa4fddfbb_9% | 2,600 | fill in the blank 6470e5fa4fddfbb_10% | 4,300 | fill in the blank 6470e5fa4fddfbb_11% |
| Fuel | 3,100 | fill in the blank 6470e5fa4fddfbb_12% | 3,000 | fill in the blank 6470e5fa4fddfbb_13% | 1,980 | fill in the blank 6470e5fa4fddfbb_14% |
| Utilities | 1,800 | fill in the blank 6470e5fa4fddfbb_15% | 3,000 | fill in the blank 6470e5fa4fddfbb_16% | 1,700 | fill in the blank 6470e5fa4fddfbb_17% |
| Total expenses | $62200 | $79400 | $46980 | |||
| Operating income | $12,200 | $15,600 | $fill in the blank 6470e5fa4fddfbb_18 | |||
| Operating income % | fill in the blank 6470e5fa4fddfbb_19% | fill in the blank 6470e5fa4fddfbb_20% | fill in the blank 6470e5fa4fddfbb_21% | |||
2. Based on a vertical analysis of each course, which accounts would you want to investigate further?
C. Which method of analysis (using a dollar value or percentage) is most relevant and/or useful? Why?
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Audit Education
Authors: Karen Van Peursem, Elizabeth Monk, Richard M.S. Wilson, Ralph Adler
1st Edition
1138192856, 978-1138192850
