Week 7

If a caterer has food sales of $160,000 and total sales of $200,000, what is the percentage of beverage sales to food sales?

• 25%

• 60%

• 150%

• 10%

If a company has days-sales-outstanding of 120 days, its accounts receivable turnover:

• Cannot be determined given the information

• Is also equal to 120

• Is more than 120

• Is approximately 3

A company's gross profit margin has increased from 35% to 55%. Therefore, its net income has:

• Increased, but not by the same percentage

• Not enough information provided to determine if net income has increased or decreased

• Decreased

• Increased by the same percentage

The current ratio will help to determine an event businesses ability to pay their short term debt (obligations).

• True

• False

If a caterer has a cost of food of $13,500 and food sales of $45,000, what is the food cost percentage?

• 2%

• 102%

• 38%

• 30%

At the end of the dinner shift, Tony's Diner has recorded $13,000 in sales. Tony notes that there were 8 servers working that shift. What was the revenue per server?

• $2,625

• $1,225

• $1,425

• $1,625

Horizontal analysis is also known as comparative analysis

• True

• False

If an event business had sales in 2022 of $100,000 and sales in 2021 of $60,000, the percentage difference between 2022 and 2021 is:

• 50%

• 67%

• 60%

• 47%

A gain can occur with the sale of a fixed asset, such as equipment

• True

• False