The following is balance sheet, income statement, and other financial information applicable to the Hilo Town Restaurant's operation in July 20XX.
|
Balance Sheet Information
|
Income Statement Information
|
|
Current assets
|
$98,400
|
Food revenue
|
$155,000
|
|
Current liabilities
|
$71,200
|
Beverage revenue
|
$20,000
|
|
Total assets
|
$390,010
|
Net income before taxes
|
$10,900
|
|
Total liabilities
|
$217,100
|
Total labor costs
|
$52,400
|
|
|
|
Other Financial and Related Information
|
|
Beginning food inventory
|
$12,480
|
|
Ending food inventory
|
$14,100
|
|
Cost of sales (food)
|
$41,075
|
|
Cost of sales (beverage)
|
$4,900
|
|
Number of guests served (average day) in July
|
452
|
|
Number of seats in restaurant
|
98 .
|
|
|
|
|
|
Use the preceding information to answer the following questions:
a. What is the current ratio? What does it mean?
b. What is the solvency ratio? What does it mean?
c. What is the average food inventory?
d. What is the food inventory turnover rate? How often (number of days) does the food inventory turn over?
e. What is the property's profit margin?
f. What is the restaurant's food cost percentage?
g. What is the restaurant's beverage cost percentage?
h. What is the restaurant's labor cost percentage?
i. What is the average food service check?
j. What is the seat turnover?
Part 2
a. Complete the following Monthly Operating Report for the Hilo Town Restaurant.
|
Year-lo Date
|
Last Year
(This
Month)
|
|
Month
|
Revenue
|
Actual
|
Budget
|
Variance
|
Actual
|
Budget
|
Variance
|
Actual
|
|
$
|
%
|
$
|
%
|
|
Jan.
|
Food
|
124,000
|
130,250
|
|
|
|
|
|
|
133,400
|
|
Feb.
|
Food
|
131,000
|
125,400
|
|
|
|
|
|
|
129,250
|
|
March
|
Food
|
139,950
|
127,450
|
|
|
|
|
|
|
130,400
|
b. What is your analys s of the operation based upon the financial "nformation in the Monthly Operating Report?
Problem 2
a. Given the following information, what is the Net Cost of Sales: Food during August 20XX for the Hilo Town Restaurant?
|
Value of ending food inventory, August 30, 20)0<
|
$ 37,450
|
|
Value of ending food inventory, July 31, 20XX
|
$ 39,790
|
|
Value of purchases during August 20XX
|
$107,475
|
|
Value of transfers to kitchen
|
$ 6,470
|
|
Value of transfers from kitchen
|
$ 3,125
|
|
Cost of employee meals
|
$ 1,140
|
|
Value of complimentary meals
|
$ 990
|
b. What is the Hilo Town Restaurant's food cost percentage for August 20XX, if its food revenue for the month was $317,410?