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 28,000

Total revenue $73,200 $95,000 $70,800

Expenses

Landscaping $7,800 $14,200 $6,400

Wages 43,900 ? 32,700

Repairs and maintenance 5,600 2,600 4,400

Fuel 3,100 3,000 1,990

Utilities 1,800 3,000 1,650

Total expenses $62,200 $78,100 $47,140

Operating income $11,000 $16,900 ?

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

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?

Bluff Run Golf Courses Income Statement Month Ending July 31, 2018 Course Blue Course Black Course Gold $62,500 $89,000 6,000 $95,000 $42,800 28,000 $73,200 $70,800 $7,800 % $14,200 % $6,400 % % % Revenues Greens fees revenue Outings revenue Total revenue Expenses Landscaping Wages Repairs and maintenance Fuel Utilities Total expenses Operating income Operating income % 32,700 % 43,900 5,600 % % 4,400 % % % 1,990 % 3,100 1,800 % 2,600 3,000 3,000 $78100 $16,900 % 1,650 % $47140 $62200 $11,000 % % %