You are the owner and manager of Spartan Steakhouse, an upscale restaurant in Kansas City serving the finest in Midwestern, corn-fed, beef. You began operating it on January 1, 2019, after purchasing the business for $1.7 million. As part of the purchase agreement, you pay a two percent royalty on all sales to the former owner. You operate Wednesday through Sunday, all 52 weeks of the year, including all holidays that fall on Wednesday through Sunday. On Wednesdays and Thursdays, you average serving 84 customers per night. The average check per customer is $47.58. Friday through Sunday, you average serving 112 customers per night and the average tab per customer is $59.81. Your cost for the food and beverage that you serve your customers is 42 percent. Your salary is $57,000 per year. You have 15 employees. The head chef is paid a salary of $75,000 per year. The two assistant chefs are paid $45,000 per year. The rest of the employees (kitchen workers, waiters/waitresses, and miscellaneous) are all paid by the hour. They average 35 hours per week and the average wage is $12 per hour. The taxes and benefits associated with payroll total 15 percent of all salaries and wages. On a non-regular basis, you provide live entertainment. In 2019, on the last Saturday of each month, Spartan Steakhouse presented the melodious tones of Eddie and the Old Guys, playing mostly Frank Sinatra, Tony Bennett, and Dean Martin songs. You paid Eddie and the Old Guys $500 per performance. Most of your advertising dollars are spent in the print media. Your contract with the local daily calls for you to spend $6,000 per month. You do have an electronic billboard on one of the busiest streets in town which costs $2,500 per month. All utilities (electric, water, phone, internet) total $4,200 per month. Supplies, both office and restaurant, come to $3,000 per month. Insurance is $1,000 per month. Accounting and legal fees cost you $750 per month. 1. Construct the income statement for 2019, including the column for percentages. 2. What were the dollar amounts of gross profit and operating profit (income)? What were the percentages? 3. What was the breakeven sales level for 2019? 4. What was the ROI in 2019? 5. In 2020, you project a 20 percent increase in sales and a cost of goods sold (COGS) of 40 percent. Construct the income statement for 2020, including the column for percentages.