1. 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	$74,000		$95,000		$70,700
   Expenses
   Landscaping	$7,800		$14,200		$6,500
   Wages	43,900		?		32,500
   Repairs and maintenance	5,600		2,600		4,400
   Fuel	3,100		3,000		1,970
   Utilities	1,800		3,000		1,700
   Total expenses	$62,200		$79,200		$47,070
   Operating income	$11,800		$15,800		?

   A. Calculate the operating income percentage for each of the courses. Round your percentages to one decimal place.

   Course Blue	___%
   Course Black	___%
   Course Gold	___%

   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	___		6,000		28,000
   Total revenue	$74,000		$95,000		$70,700
   Expenses
   Landscaping	$7,800	___%	$14,200	___%	$6,500	___%
   Wages	43,900	___%	fill in the blank 32cbcffd0fcafdd_6	___%	32,500	___%
   Repairs and maintenance	5,600	___%	2,600	___%	4,400	___%
   Fuel	3,100	___%	3,000	___%	1,970
   Utilities	1,800	___%	3,000	___%	1,700	___%
   Total expenses	$62200		$79200		$47070
   Operating income	$11,800		$15,800		$___
   Operating income %	___%		___%		___%

2. Based on a vertical analysis of each course, which accounts would you want to investigate further?

   1. Course Gold is performing better with respect to landscaping, wages, and fuel.

   2. Course Black is performing worse with respect to repairs and maintenance, but better with respect to landscaping.
   3. Course Blue is performing better with respect to fuel, but worse with respect to utilities.
   4. None of the above statements is correct.

3. C. Which method of analysis (using a dollar value or percentage) is most relevant and/or useful? Why?

   1. The percentage method is most relevant/useful because it removes the size differences between courses and standardizes the financial performance.

   2. The dollar value method is most relevant/useful because it retains the size differences between courses and standardizes the financial performance.

   3. Both approaches are equally relevant and useful.

   4. Neither approach is relevant or useful on its own - a proper analysis requires both.