The Empire Restaurant and Lounge has hired you to help them understand the numbers in their income statements. They have a budgeted statement with their budget numbers and they also have the actual figures for a particular month in consideration and for one entire financial year.
The management of the restaurant is finding it hard to understand how there can be differences between the budgeted and the actual statements.
With the financial expertise that you have gained so far, and using the budget worksheet, given in the sidebar, complete the following tasks for the management of the restaurant.
- Calculate the variances in the financial statement and identify the favorable or unfavorable variances.
- Identify possible causes of the significant variances, for example, any variance that is over $500.
- Discuss possible solutions to the significant variances identified.
Save this Microsoft Excel document as W6_A1_lastname_firstname.xls.
Sheet3 Sheet2 Sheet1 Item Month Year Year Food Revenue Beverage Revenue Cost of Goods Sold: Food costs Beverage costs Operating Expenses Payroll Payroll Tax/benefits Direct operating expenses Advertising Utilities Administrative Repairs/Maintenance Real estate property taxes Insurance Depreciation Total Operating Expenses Total Expenses Profit (before tax) Total Revenue % of Total Revenue Gross Profit Total Cost of Sales %of food sales Variance Month December 200X Year $ Year % The Empire Restaurant and Lounge and year ended 200X Budget Amount 200X Actual Amount 200X Short Term Loan Interest Expense Occupancy Costs Budget Budget Analysis and Worksheet %of beverage sales Page 1 of 1 CUL403 Food Service Financial Management © 2008 The Art Institute of Pittsburgh Online…
Attachments:
W6 Budget Wor….xls