FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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EXHIBIT 1: YALLA MOMOS INCOME STATEMENT FOR THE YEAR ENDING 2015 (IN AED)

 

Net Revenue

504,000

 
 

Expenses

 

 
 

Cost of food sales

151,200

 
 

Rent

68,000

 
 

Salaries

54,000

 
 

Administrative costs

23,000

 
 

Depreciation

30,200

 
 

Utilities

13,000

 
 

Miscellaneous expenses

15,800

 
 

Advertising costs

0

 
 

Interest

13,000

 
 

Net Profit

135,800

 

 

 

EXHIBIT 2: YALLA MOMOS PROJECTIONS FOR THE YEAR 2016 (IN AED)

 

Without expansion

With expansion

Rent

75,000

88,000

Salaries

61,400

75,000

Administrative costs

26,000

34,000

Depreciation

34,720

38,360

Utilities

14,000

19,000

Miscellaneous expenses

17,060

19,180

Advertising costs

8,000

12,000

Interest

13,000

16,000

Source: Company documents, Ivey publications

 

Required:

  1.  Calculate the 2015 BEP and Margin of safety (MOS) in quantity and monetary terms. 
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