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Common Size Income Statement: Red Lobster

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Red Lobster #21212
Income Statement
For the Period of January 1-31, 2010

Red Lobster #21212
Income Statement
For the Period of January 1-31, 2010

Jan % of Sales
Food 65,302 % ?
Beverage 40,024 % ?
Total Sales 105,325 100.0%

Cost of Sales
Food 18,937 % ?
Beverage 6,004 % ?
Total Cost of Sales ? 23.7%

Gross Profit 80,384 % ?
Operating Expenses
Salaries & Wages 32,861 %
Employee Benefits 3,054 2.9%
Direct Operating Expenses 7,583 7.2%
Music and Entertainment 737 0.7%
Marketing 2,107 2.0%
Utilities 2,422 2.3%
Repairs & Maintenance 1,369 1.3%
General & Administrative Expenses 3,792 3.6%
Total Operating Expenses 53,926 % ?

Operating Profit 26,458 25.1%

Rent and Other Occupation Costs 6,109 5.8%

IBITDA 20,349 19.3%

Interest 1,053 1.0%
Income Tax 7,373 7.0%
Depreciation 1,685 1.6%

Net Income %?

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Solution Summary

This solution provides you with an explanation of what a common size income statement is and how it is prepared. A completed common size income statement for Red Lobster for the period January 1 - 31, 2010 is also provided in the solution for illustration purposes.

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Hello Student,

Before I begin to assist you in answering this question, let me explain to you what a common size income statement is. Note the following:

A common size income statement is an income statement in which each account (such as cost of sales, gross profit, general expenses, net income etc.) is expressed as a percentage of the value of sales. This type of financial statement can be used to allow for easy analysis between companies or between time periods of a company. When you format financial statements in this way, it reduces the bias that can occur when analyzing companies of differing sizes. It also ...

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