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Managerial Accounting Homework

Liz Marett is the chief financial officer for Fulton Restaurants.  She delivered the following comments in a recent conference call with analysts that follow the company:                          

            "20X5 was another excellent year.  Net income was a record setting $10,000,000.  Food Revenue reflected 60% of total revenue with the remainder being beverage and other.  We maintained our overall profit margin at the historic 10% level.  This occurred despite an increase in food costs that lowered our food department gross profit to 55%.  We are proud that we continue to maintain a healthy balance sheet that is free of any liabilities.  All of our financing continues to be provided by our common and preferred shareholders.  Our beginning of year equity of $75,000,000 was sufficient to fund our capital needs, and no additional shares were issued this year.  Our shareholders have again received their full $2,000,000 in dividends for the year.  The remaining earnings have been reinvested in the company."     
 
Use profitability ratios to determine Fulton's:

Total sales
Food Revenue
food cost of goods sold
net income
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1 Answer

Total sales: $10,000,000 (net income)/10% (overall profit margin)=$100,000,000
Food revenue: $100,000,000 (Total sales/revenue)*60% (Food's share of total revenue)=$60,000,000
Food COGS: $60,000,000 (Food revenue)*[100%-55% (Food gross profit)]=$27,000,000
Net Income (?): $10,000,000 (Net income was a record setting $10,000,000, given in the comments)