cure https://edugen.wileyplus.com/edugen/lti/main.uni Davis, Managerial Accounti

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cure https://edugen.wileyplus.com/edugen/lti/main.uni Davis, Managerial Accounting, 3e Gradebook ORION Downloadable eTextbook nment CALCULAToR PRENTER VERSION Exercise 12-5 Ivanhoe Burgers operates and franchises fast-food restaurants specializing in grilled hamburgers and chicken sandwiches. The 2015 and 2016 income statements are as follows (in $000s): Year Ended December 31, 2016 December 31, 2015 Total revenues Expenses $41,051 $40,253 11,127 16,917 6,838 2,564 2,217 997 40,660 391 Cost of restaurant sales 11,090 16,745 5,309 2,657 2,107 Restaurant operating expenses General and administrative Depreciation and amortization Impairment of long-lived Total expenses Operating income 37,908 $2,345 Prepare a common-size analysis of this section of Ivanhoe Burgers' income statement. Your answers may not add perfectly due to rounding. (Round answers to 1 decimal place, e.g. so.2%) 2016 Total Revenues Cost of restaurant sales i Phasupoisv 1000-201Dehnyeirrison.unG A ll Rights Reserved. A Division of 2oonWlev. A.5onsIn

Explanation / Answer

common size = respective item or head amount/total revenue for example for year 2016 cost of restaurant sale 11127/41051 0.271 2016 2015 total revenue 100.0% 100.0% Expenses cost of restaurant sales 27.1% 27.6% Restaurant operating expenses 41.2% 41.6% General and administrative 16.7% 41.6% Advertising 6.2% 6.6% Depreciation and amortization 5.4% 5.2% impairment of long lived assets 2.4% 0.0% total expenses 99.0% 94.2% operating income 1.0% 5.8%

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