value income statement gene rsquo s diner has the following information for october 690876
Value Income Statement
Gene’s Diner has the following information for October, when several new employees were added to the wait staff:
Sales revenue |
$180,000 |
Cost of food serveda |
60,000 |
Employee wages and salariesb |
45,000 |
Manager salariesc |
18,000 |
Building costs (rent, utilities, etc.)d |
27,000 |
a5 percent of this cost was for food that was not used by the expiration date and 10 percent was for food that was incorrectly prepared because of errors in orders taken.
b15 percent of this cost was for time spent by cooks to re prepare orders that were incorrectly prepared because of errors in orders taken.
c20 percent of this cost was time taken to address customer complaints about incorrect orders.
d80 percent of the building was used.
Required
a. Using the traditional income statement format, prepare a value income statement.
b. What value would there be to Gene from preparing the same information in November?