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Research Outline
Prepared for Sam | Delivered January 21, 2020
Profit Loss Analysis
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Goals
To analyze the P&L statements for Kitchen on Kent, Melba Restaurant, Eight Restaurant, and the Food Gallery.
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Early Findings
Since all businesses being evaluated are Australian restaurants, it was assumed that all amounts were in Australian dollars (A$) unless indicated otherwise in the reports.
Kitchen on Kent
The net revenue for the restaurant for the year ended 12/31/19 was
A$2,607,605
. This was A$1,122,106 (3,729,711-2,607,605) less than the budgeted amount of
A$3,729,711
. Therefore, the actual sales for 2019 were 30.1% (1,122,106/3,729,711*100) below projections.
It was projected that food would account for
81.1%
of sales and beverages would make up the remaining
18.9%
for 2019. Actually, food accounted for
92%
of sales, and beverages accounted for
8%
.
The cost of sales for food and beverage was expected to be
A$1,354,444
in 2019, but the actual cost was
A$1,035,055
. The actual cost was A$319,389 (1,354,444-1,035,055) less than budgeted, which is 23.6% (319,389/1,354,444*100) less than projections.
T
h
e
payroll and related expenses totaled A$
1,846,830
for 2019, which was A$36,441 (1,846,830-1,810,389) more than the budgeted amount of
A$1,810,389
. Therefore, actual payroll related expenses were 2.0% (36,441/1,810,389*100) more than budgeted for 2019.
Other expenses were projected to be
A$225,145
for the year, while actual other expenses came in at
A$302,134
, which was A$76,989 (302,134-225,145), or 34.2% (76,989/225,145*100), over budget.
Net income for the year was budgeted at
A$339,734
, but the company actually lost
A$576,414
. This was 269.7% [(339,734-(-)576,414)/339,734*100] less than projected.
Melba Restaurant
The net revenue for the restaurant year-to-date through 10/31/19 was
A$9,460,943
. This was A$877,587 (
10,338,530
-
9,460,943
) less than the budgeted amount of
A$10,338,530
. Therefore, the actual sales through October 2019 were 8.5% (877,587/10,338,530*100) below projections.
It was projected that food would account for
89.4%
of revenue and beverages would account for
10.4%
. The actual numbers through October were very similar with food representing
90.7%
and beverages
9.2%
of total revenue.
The cost of sales for food and beverage was expected to be
A$2,924,882
through October, but the actual cost was
A$2,740,254
.
T
h
e
actual cost was A$184,628 (2,924,882-2,740,254) less than budgeted, which is 6.3% (184,628/
2,924,882
*100) less than projections.
T
h
e
payroll and related expenses totaled
A$4,938,711
through October 2019, which was A$265,396 (
5,204,107-4,938,711
) less than the budgeted amount of
A$5,204,107
. Therefore, actual payroll expenses were 5.1% (265,396/5,204,107*100) less than budgeted.
Other expenses were projected to be
A$370,044
through October, while the actual other expenses came in at
A$436,144
, which was A$66,100 (436,144-370,044), or 17.9% (66,100/370,044*100), over budget.
Net income through October 2019 was budgeted at
A$1,839,497
, but the company actually made
A$1,345,834
. This was 26.8%
[
(1,839,497-1,345,834)/1,839,497*100
)]
less than projected.
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