Question

In: Accounting

Please fill in the 3 blanks in the spreadsheet and then answer the two following question....

Please fill in the 3 blanks in the spreadsheet and then answer the two following question.

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:

A. Find the missing value for outings revenue, wages, and operating income.

BLUFF RUN GOLF COURSES
Income Statement
Month Ending July 31, 2018
Blue Course   Black Course   Gold Course  
Greens fees revenue    $62,500    $89,000    $42,900   
Outings revenue fill in the blank 6,000 27,000
Total revenue $74,100 $95,000 $69,900
Expenses:
Landscaping $7,800 $14,200 $6,500
Wages 43,900 fill in the blank 32,700
Repairs and maintenance 5,600 2,600 4,500
Fuel 3,100 3,000 1,970
Utilities 1,800 3,000 1,600
Total expenses $62,200 $79,200 $47,270
Operating income $11,900 $15,800 $fill in the blank

B. Rank the courses in order of profitability, using dollars.

C. Rank the courses in order of profitability, using percentages.

Solutions

Expert Solution

A. Calculations of fill in blanks

Blue course outing Revenue = Total Revenue of blue course - Greens fees Revenue

= 74100-62500

= 11600

Black course wages = Total Expenses - Remaining all expenses of black course

= 79200 - 14200-2600-3000-3000

= 56400

Gold course operating income = Total Revenue - Total Expenses

= 69900- 47270

= 22630

B. Higher operating income of course is rank first , 2nd highest operating income course rank 2nd and so on .

Course Blue course Black course Gold Course
Operating income 11900 15800 22630
Rank 3rd 2nd 1st

C. First of all we calculate the percentage of profitability than on the basis of percentage giving rank to the courses .

Blue course , profitability percentage =

Black course profitability percentage=

Gold course profitability percentage =

Courses Blue black Gold
Profitability % 16.06% 16.63% 32.37%
Rank 3rd 2nd 1st

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