Question

Information from the Income Statement for December 2017 • Past year revenues were $2,200,000 with food accounting for 80% of sales. • Cost of sales were 32.62% of total sales with a food cost of 37.1% and a beverage cost of 14.7% • Expenses as a percentage of total sales were provided by Mr. Medom • Annual Rent is $154,000 Salaries & Wages Depreciation Interest Marketing General & Administrative 30.0% 2.0% 0.5% 2.1% 3.0% Employee Benefits Direct Operating Expenses Music & Entertainment Utilities Repairs & Maintenance 3.9% 5.7% 0.1% 2.5% 2.0%

Need help creating a income statement with the following information provided.

Answer 1

INCOME STATEMENT
SALES	$	%
Food	1760000	80
Beverage	440000	20
Total sales	2200000	100
COST OF SALES
Food	574112	32.62
Beverage	143528	32.62
Total cost of sales	717640	32.62
GROSS PROFIT
Food	1185888	67.38
Beverage	296472	67.38
Total gross profit	1482360	67.38
OPERATING EXPENSES
Salaries and wages	660000	30
Employee benefits	85800	3.9
Direct operating expenses	125400	5.7
Music & entertainment	2200	0.1
Marketing	46200	2.1
Utility services	55000	2.5
General and adminstrative	66000	3
Repairs & maintanence	44000	2
Total Operating Expenses	1084600	49.3
NON-CONTROLLABLE EXPENSES
Rent	12833	0.58
Depreciation	44000	2
Interest	11000	0.5
Total non controllable expenses	67833.33	3.08
Income Before Taxes	329927	15
NOTE:
A.december rent=154000/12 =12833.33
B.income before tax =gross profit- operating expenses-non contributable expenses
= 1482360-1084600-67833
= 1482360-1152433
= 329927
C.	%
Salaries and wages	30
Employee benefits	3.9
Direct operating expenses	5.7
Music & entertainment	0.1
Marketing	2.1
Utility services	2.5
General and adminstrative	3
Repairs & maintanence	2
Depreciation	2
Interest	0.5
total percentage	51.8
D.
food cost =37.1%
beverage cost= 14.7%
total =37.1+14.7 =51.8
add:cost of sales=32.62%
add:rent                 =0.58%
total cost                =85%
add :profit               =15%
sale                          =100%