Manage Finances
Course: Manage finances December 21, 2012
Lecturer: Matt Coulibaly T.A: Sophia
I- Financial Reports for Mary’s Chinese restaurant.
After spending many years in school studying business and completing her education, Mary finally graduates in 2009 and makes her parents proud. Mary has always dreamt of owning a Chinese food restaurant.
A year later, her dream becomes true as her parents decide to reward her for her hard work by giving her the necessary funds to open the restaurant.
We are currently in 2012 and Mary shows you the Financial Reports for her Chinese food restaurant of the year 2011. However, some details are missing because one of her employees accidently deleted some information. Help Mary recover the missing information and then make sure she understands the Income Statement, the Balance Sheet and the Cash Flow statement.
Income Statement of Mary’s Chinese food restaurant | Year 2011 | | | Sales | 410,333 | Less Drinks and Food Purchases (Cost of Goods Sold) | | Gross Profit | 297,435 | | | Advisors fees | 1,200 | Wages On-costs | 11,100 | Rent | 34,600 | Electricity | 1,800 | Insurances | 1,800 | Interest paid | 4,400 | Selling expenses | 4,456 | Depreciation | 6,000 | Investment Income | 8,000 | Bank Charges | 1,900 | Telephone bill | 2,200 | Wages Gross | 37,000 | Other Expenses | 5,700 | Total operating expenses | | Net Profit before tax | |
Answer the following questions for Mary’s Chinese food restaurant Income Statement.
1. What account types are reported in the Income statement? Explain them. 2. Calculate the missing value for Mary’s restaurant Cost of Goods sold? 3. If Cost of Goods sold were increased what would happen to the gross profit? 4. Explain how Sales or Cost of Goods sold could influence Gross profit.
Lecturer: Matt Coulibaly T.A: Sophia
I- Financial Reports for Mary’s Chinese restaurant.
After spending many years in school studying business and completing her education, Mary finally graduates in 2009 and makes her parents proud. Mary has always dreamt of owning a Chinese food restaurant.
A year later, her dream becomes true as her parents decide to reward her for her hard work by giving her the necessary funds to open the restaurant.
We are currently in 2012 and Mary shows you the Financial Reports for her Chinese food restaurant of the year 2011. However, some details are missing because one of her employees accidently deleted some information. Help Mary recover the missing information and then make sure she understands the Income Statement, the Balance Sheet and the Cash Flow statement.
Income Statement of Mary’s Chinese food restaurant | Year 2011 | | | Sales | 410,333 | Less Drinks and Food Purchases (Cost of Goods Sold) | | Gross Profit | 297,435 | | | Advisors fees | 1,200 | Wages On-costs | 11,100 | Rent | 34,600 | Electricity | 1,800 | Insurances | 1,800 | Interest paid | 4,400 | Selling expenses | 4,456 | Depreciation | 6,000 | Investment Income | 8,000 | Bank Charges | 1,900 | Telephone bill | 2,200 | Wages Gross | 37,000 | Other Expenses | 5,700 | Total operating expenses | | Net Profit before tax | |
Answer the following questions for Mary’s Chinese food restaurant Income Statement.
1. What account types are reported in the Income statement? Explain them. 2. Calculate the missing value for Mary’s restaurant Cost of Goods sold? 3. If Cost of Goods sold were increased what would happen to the gross profit? 4. Explain how Sales or Cost of Goods sold could influence Gross profit.