Domain Manager Getting Started 11 Imported From IE Importe

Domain Manager- ) Getting Started 11 Imported From IE | Imported From Fire Greg\'s Diner has the following information for year 2, when several new employees were added to the waitstaff Sales revenue Cost of food serveda Employee wages and salaries Manager salaries Building costs (rent, utilities, etcd $ 120,000 43,200 16,800 22,000 16,000 a 5 percent of this cost was for food that was not used by the expiration date and 10 percent was for fo that was incorrectly prepared because of errors in orders taken. b 15 percent of this cost was for time spent by cooks to reprepare orders that were incorrectly prepared because of errors in orders taken. e 20 percent of this cost was time taken to address customer complaints about incorrect orders 100 percent of the building was used Required: ta) Using the traditional income statement format, prepare a value income statement Greg\'s Diner Value Income Statement For the year 2 ending December 31 Nonvalue-added Value-ad Total activities activities Sales revenue Cost of merchandise: Cost of food served Gross margin floss) Operating expenses Employee salaries and wages Managers selaries Busiding costs 16.000 22 000 Operating income do33)

Solution

Greg’s Diner Value Income Statement For the year 2 ending December 31 Nonvalue­added activities Value­addedactivities Total Sales revenue 120,000 120,000 Cost of merchandise: Cost of food served 6480 36720 43200 Gross Margin -6,480 83,280 -31,200 Operating Expense Employee Salaries and Wages 2520 14280 16800 Managers Saleries 4400 17600 22000 Building Cost 16000 16000 Operating Income -13,400 35,400 22,000 Greg’s Diner Value Income Statement For the year 2 ending December 31 Nonvalue­added activities Value­addedactivities Total Sales revenue 120000 120000 Cost of merchandise: Cost of food served =43200*0.15 =43200*0.85 =6480+36720 Gross Margin -6480 =120000-36720 =12000-43200 Operating Expense Employee Salaries and Wages =16800*0.15 =16800*0.85 16800 Managers Saleries =22000*0.2 =22000*0.8 22000 Building Cost 16000 16000 Operating Income =+-6480-2520-4400 =83280-14280-17600-16000 =-13400+35400