Topic: Exhibit 1

Please refer to the fiscal period noted on the chart on. Your goal is to either increase the sales number. This will have an impact on other categories noted in this specific chart.

Your post will include:

1) Change the Sales $$ amount.

2) What is the percent of change that you made to the Sales $$ amount? (Show calculations)

3) What other line items on this specific statement would be affected by this change? Please identify which items may be changed in direct relation to the new Sales $$ amount.

4) Change the the $$ amount in the areas the you feel will be affected by the new Sales amount.

5) Identify the new Net income $$ amount and new % of Sales.

Southern Fast Food, Inc. Income Statement For the period ended 12/31/X2 Sales Cost of food and paper goods Gross profit $310,000122,450100.0%60.5%39.5% OPERATING EXPENSES Salaries and wages Employee benefits Direct operating expenses Marketing Utility services Occupancy costs Depreciation Amortization General and administrative Other expenses Total operating expenses Operating income Gain on sale of equipment Loss on sale of marketable securities Income before income taxes (IBIT) Income taxes Net income \begin{tabular}{rr} 64,480 & 20.8% \\ 9,300 & 3.0% \\ 5,580 & 1.8% \\ 28,520 & 9.2% \\ 8,680 & 2.8% \\ 22,630 & 7.3% \\ 18,000 & 5.8% \\ 500 & .2% \\ 6,830 & 2.2% \\ 8,830 & 2.8% \\ \hline 173,350 & 55.9% \\ 14,200 & 4.6% \\ 1,000 & .3% \\ (1,200) & (.4%) \\ \hline 14,000 & 4.5% \\ 5,000 & 1.6% \\ \hline 9,000 & 2.9% \\ \hline \end{tabular}