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34 Cards in this Set
- Front
- Back
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What does the balance sheet represent? |
BALANCE SHEET Liabilities + Equity = Assets |
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What is the income statement? |
INCOME STATEMENT Revenue - Expenses (or Total Sales - Total Expenses) |
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What is net income and how do you calculate it? |
Net income is a line item at the very bottom of the income statement. Revenue - Expenses = Net income (e.g. this explains what the income statement IS) |
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What is revenue? |
The amounts received from sustomers for goods or services rendered. |
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How do you calculate total revenue? |
Total Revenue = Price x Quantity Sold |
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What are expenses? |
Amounts incurred for producing revenues. They don't benefit a future time period. |
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How do you calculate the goods available for sale? |
Goods available for sale = Beginning inventory + Purchases *This is NET purchases - does not include purchases made & returned later. |
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What is Cost of Goods Sold (COGS) & how do you calculate it? |
COGS is the total cost of inventory a company has used/sold in a period. COGS = Beginning inventory + Purchases - Ending Inventory |
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Formula for Gross Profit? |
Gross Profit = Sales revenue - COGS *Sales revenue is NET sales. |
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Profit Margin formula? |
Profit Margin = Net profit DIVIDED BY Total sales |
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Revenue Mix formula? |
Revenue Mix = Food sales DIVIDED BY Total sales |
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Total Labor Cost formula? |
Total Labor Cost = Total labor DIVIDED BY Total sales |
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Kitchen labor cost formula? |
Kitchen labor cost = Kitchen labor DIVIDED BY Total sales |
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Total food & beverage cost formula? |
Total Food & Beverage Cost = COGS DIVIDED BY Total sales
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Food cost formula? |
Food Cost = Total cost of all food DIVIDED BY Total sales |
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Name all the formulas that are divided by total sales? |
Profit margin, Revenue mix, Total labor cost, Kitchen labor cost, Total food & beverage cost, Food cost |
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Prime Cost formula? |
Prime Cost = Raw materials (food & beverage) + Labor |
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Total cost formula? |
Total Cost = Variable cost + Fixed cost |
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What are fixed costs? |
Fixed costs remain constant, regardless of level of production (ex. building insurance is $100 no matter how many meals are served, or rent is $3200) |
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What are variable costs? |
Variable costs are cost that change with the level of production (labor + raw material. Double production costs, and variable costs double). |
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Weighted Average formula? |
Weighted Average = COGS DIVIDED BY units available for sale |
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What is straight line depreciation & how do you calculate it? |
Straight line depreciation is $ monthly or yearly depreciation expense (depends if you use months or years for useful life) Fixed asset cost - salvage value = ? ? DIVIDED BY Useful life = $ of monthly/yearly depreciation expense |
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What does the balance sheet represent? |
Liabilities + Equity = Assets |
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What does the income statement represent? |
Revenues - Expenses Or Net Income |
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What is the break even point? |
The point of balance where the organization is making neither profit nor loss. The point where sales exactly cover expenses. |
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Break even point formula? |
Units that need to be sold to break even = Fixed costs DIVIDED BY (Price per unit - Variable cost per unit) *Solve via these steps: Price/unit - variable cost/unit = ? Fixed costs DIVIDED BY ? = Units that need to be sold to break even (e.g. you will break even once this # of units is sold) |
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What is the difference between cost and food cost? |
Cost is the total monies spent to provide goods/services Food cost is the total monies spent for edible products *Related to volume of sales. |
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Cost per Meal and Labor Cost per Meal formulas? |
Cost per Meal = Total cost DIVIDED BY Total # of meals prepared Labor Cost per Meal = Total labor DIVIDED BY Total # of meals prepared *Can be very complex to determine the total # of meals prepared though. |
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Which pieces of info do you need to find the total # of meals prepared & what is it? Total food purchased $32,123 Total cafe sales $23,231 Total labor expenses $25,790 Meal equivalent factor $2.15 Total patient meals served 1923 Then, determine the labor cost per meal. |
Need: (Cafe Sales / Meal equiv. factor) + Pt. meals served $23,231 / $2.15 = 10,805.12 + 1923 = $12,728.12 is total # of meals prepared. Then, Total labor / total # of meals served $25,790 / $12,728.12 = $2.03 is labor cost per meal. |
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What is 1 FTE based on? |
1 employee working full-time 8 hrs/d, 40 hrs/wk, 173.33 hrs/mo, 2080 hrs/yr |
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Calculate the meals for labor/minute/day if 700 meals are prepared by 9 FTE. |
Answer: 0.16 9 FTE x 8 (work 8 hrs/d) = 72 hrs x 60 min/hr = 4320 min. 700 meals DIVIDED BY 4320 min = 0.16 meals for 9 FTEs/min/day. |
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How much of a regular FTEs time does 1 weekly relief worker cover? |
1 weekly relief worker can cover 2.5 FTEs regular days off. |
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You have 50 FTE workers that work 5 out of 7 days per week. How many weekly relief workers do you need to cover your 50 FTE workers? |
A: 20 50 FTEs DIVIDED BY 2.5 = 20 weekly FTE relief workers. |
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Turnover rate formula? |
Turnover Rate = (Total replacements DIVIDED BY Average # of employees) x 100 |
