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Analyzing an Income Statement Worksheet-Chef Todd's Lumberjack Food Truck This assignment meets ACEND 4.2 Analyzing Financial Data 2020-actual 2021-actual Projected Profit & Loss Sales Revenue 6400 32000 Cost of Goods Sold (COGS) 750000 39150 3400 12800 Operating Expenses Salaries/wages-controllable 800 6600 16700 0 1320 4175 Employee related expenses-controllable Fixed Operating Expenses including truck rental 3000 3500 3700 Operating Income (sales-COGS-Op Exp) -800 7780 686275 Insurance 300 300 300 832 4160 97500 Income taxes Total expenses 4932 4760 97800 Net Profit -1932 3320 588475 Background 2020: Chef Todd opened in food truck the last quarter of 2020. He offered 2 lunch meals per week (10 weeks on T/Th) on the beautiful campus of SFA. He charged $8 per meal and sold 80 meals each week for both days. The food cost was $4 per meal, and he hired one employee at $8.00/hr for 10 hours per week. 2021: Starting in 2021, Chef Todd expanded his business to 40 weeks over the course of the year. He continued to serve 2 meals per week but sold 100 meals each week for both days. Each meal cost $8 and his food cost remained at $4 per meal. Due to his expanded service, he hired an 2022-projected additional part time employee for a total of 2 employees each working 10 hours per week. He raised their salary to $8.25/hr. He also chose to offer part-time health insurance to each employee. 2022-projected: Chef Todd plans to offer lunch meal service over 50 weeks, increase his meal cost to $10 each, and serve 150 meals for the week (still Tu/Th). With rising food costs, he believes he can keep his food costs to jut $6 per meal. He plans to increase his employee hours to 20 hr/wk each, with a slight increase in hourly rate to $8.35/hr. Questions-answer each question in full, well written sentences, and make sure to answer all parts of each question. Each question is worth 5 points for a total of 20 points. Submit in Canvas with your menu project. Q1: Did Todd earn a profit in 2020? What contributed to his first year results? Could he have done anything differently? Q2: What happened in 2021 to show a small profit? Are there things he could have done differently to earn a greater profit? Explain your answers. Q3: Why does Todd predict such a large increase in sales for 2022? Is it a reasonable expectation and why? What part of his plan is a good idea and why? Do you have an idea to help him reach his goal and why do you suggest that? Q4: At the rate Todd is going, would you expect him to continue to be successful in 5-years? What about in 10 years? What would he need to do to continue to succeed in his business? Analyzing an Income Statement Worksheet-Chef Todd's Lumberjack Food Truck This assignment meets ACEND 4.2 Analyzing Financial Data 2020-actual 2021-actual Projected Profit & Loss Sales Revenue 6400 32000 Cost of Goods Sold (COGS) 750000 39150 3400 12800 Operating Expenses Salaries/wages-controllable 800 6600 16700 0 1320 4175 Employee related expenses-controllable Fixed Operating Expenses including truck rental 3000 3500 3700 Operating Income (sales-COGS-Op Exp) -800 7780 686275 Insurance 300 300 300 832 4160 97500 Income taxes Total expenses 4932 4760 97800 Net Profit -1932 3320 588475 Background 2020: Chef Todd opened in food truck the last quarter of 2020. He offered 2 lunch meals per week (10 weeks on T/Th) on the beautiful campus of SFA. He charged $8 per meal and sold 80 meals each week for both days. The food cost was $4 per meal, and he hired one employee at $8.00/hr for 10 hours per week. 2021: Starting in 2021, Chef Todd expanded his business to 40 weeks over the course of the year. He continued to serve 2 meals per week but sold 100 meals each week for both days. Each meal cost $8 and his food cost remained at $4 per meal. Due to his expanded service, he hired an 2022-projected additional part time employee for a total of 2 employees each working 10 hours per week. He raised their salary to $8.25/hr. He also chose to offer part-time health insurance to each employee. 2022-projected: Chef Todd plans to offer lunch meal service over 50 weeks, increase his meal cost to $10 each, and serve 150 meals for the week (still Tu/Th). With rising food costs, he believes he can keep his food costs to jut $6 per meal. He plans to increase his employee hours to 20 hr/wk each, with a slight increase in hourly rate to $8.35/hr. Questions-answer each question in full, well written sentences, and make sure to answer all parts of each question. Each question is worth 5 points for a total of 20 points. Submit in Canvas with your menu project. Q1: Did Todd earn a profit in 2020? What contributed to his first year results? Could he have done anything differently? Q2: What happened in 2021 to show a small profit? Are there things he could have done differently to earn a greater profit? Explain your answers. Q3: Why does Todd predict such a large increase in sales for 2022? Is it a reasonable expectation and why? What part of his plan is a good idea and why? Do you have an idea to help him reach his goal and why do you suggest that? Q4: At the rate Todd is going, would you expect him to continue to be successful in 5-years? What about in 10 years? What would he need to do to continue to succeed in his business

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