Fill This Form To Receive Instant Help
Fill This Form To Receive Instant Help
Homework answers / question archive / The following information is from Bluff Run Golf Courses
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 $73,100 $95,000 $70,800 $7,800 $14,200 Expenses Landscaping Wages Repairs and maintenance Fuel $6,300 32,500 43,900 ? 5,600 2,600 4,300 3,100 3,000 1,970 Utilities 1,800 3,000 1,650 Total expenses $62,200 $78,700 $46,720 Operating income $10,900 $16,300 ? 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 Course Blue Course Black Course Gold Revenues Greens fees revenue $62,500 $89,000 $42,800 Outings revenue 6,000 28,000 $73,100 $95,000 $70,800 $ Total revenue Expenses Landscaping $7,800 % $14,200 % $6,300 % Wages 43,900 % % 32,500 % % 5,600 % 2,600 % 4,300 % Repairs and maintenance Fuel Utilities 3,100 % 3,000 % 1,970 % 1,800 % 3,000 % 1,650 % $62200 $78700 $46720 Total expenses Operating income Operating income % $10,900 $16,300 % % % % 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?
