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		$42,800
Outings revenue	?		6,000		29,000
Total revenue	$73,500		$95,000		$71,800
Expenses
Landscaping	$7,800		$14,200		$6,500
Wages	43,900		?		32,700
Repairs and maintenance	5,600		2,600		4,500
Fuel	3,100		3,000		1,970
Utilities	1,800		3,000		1,650
Total expenses	$62,200		$80,000		$47,320
Operating income	$11,300		$15,000		?

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

Course Blue	fill in the blank e778b8031fde038_1%
Course Black	fill in the blank e778b8031fde038_2%
Course Gold	fill in the blank e778b8031fde038_3%

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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		$42,800
Outings revenue	fill in the blank 6d6d2cfeb07d002_1		6,000		29,000
Total revenue	$73,500		$95,000		$71,800
Expenses
Landscaping	$7,800	fill in the blank 6d6d2cfeb07d002_2%	$14,200	fill in the blank 6d6d2cfeb07d002_3%	$6,500	fill in the blank 6d6d2cfeb07d002_4%
Wages	43,900	fill in the blank 6d6d2cfeb07d002_5%	fill in the blank 6d6d2cfeb07d002_6	fill in the blank 6d6d2cfeb07d002_7%	32,700	fill in the blank 6d6d2cfeb07d002_8%
Repairs and maintenance	5,600	fill in the blank 6d6d2cfeb07d002_9%	2,600	fill in the blank 6d6d2cfeb07d002_10%	4,500	fill in the blank 6d6d2cfeb07d002_11%
Fuel	3,100	fill in the blank 6d6d2cfeb07d002_12%	3,000	fill in the blank 6d6d2cfeb07d002_13%	1,970	fill in the blank 6d6d2cfeb07d002_14%
Utilities	1,800	fill in the blank 6d6d2cfeb07d002_15%	3,000	fill in the blank 6d6d2cfeb07d002_16%	1,650	fill in the blank 6d6d2cfeb07d002_17%
Total expenses	$62200		$80000		$47320
Operating income	$11,300		$15,000		$fill in the blank 6d6d2cfeb07d002_18
Operating income %	fill in the blank 6d6d2cfeb07d002_19%		fill in the blank 6d6d2cfeb07d002_20%		fill in the blank 6d6d2cfeb07d002_21%

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

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

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

The percentage method is most relevant/useful because it removes the size differences between courses and standardizes the financial performance. The dollar value method is most relevant/useful because it retains the size differences between courses and standardizes the financial performance.Both approaches are equally relevant and useful.Neither approach is relevant or useful on its own - a proper analysis requires both.