StudentShare solutions
Triangle menu

Financial Management of a Small Burger Restaurant - Coursework Example

They provide a rough idea of how the business can be in future and can even identify areas of concerns that can appear in future. Each head in the projected financial statement is based on certain assumptions; some can easily be predicted while some are difficult to predict as they are outside business’s control for e.g. changes in taxes, an unpredictable event etc. (Lasher. 2000; Covello. 1998) In a small business like burger restaurant operative in a college campus, since there are no proper planning departments and tools, the projection technique of financial management can be useful. A typical small burger restaurant’s sources of revenue can be sale of food and beverages. The main heads of costs could be the material costs, packaging and transportation of food etc. In any other business, the restaurants have operating expenses like rents, utilities, labor wages, cleaning expenses etc. Such businesses are not operative in a very dynamic environment nor are very large businesses which have many complexities and changes to take account of. The estimated projected income statement for such a business for 3 years can be presented as below: Pro-forma 3 years Projected Income Statement YEAR-1 YEAR-2 YEAR-3 SALES REVENUE (NET) ($) ($) ($) Food revenue 505,890 570,276 548,674 Beverage Revenue 151,110 153,884 233,682 Food Cost (143,719) (158,863) (168,542) Beverage Cost (47,906) (44,807) (42,136) TOTAL INCOME 465,375 520,490 571,678 OPERATING EXPENSES Advertising 1,200 2,400 3,000 Depreciation 36,000 28,800 23,040 Utilities and Phones 31,080 33,300 37,200 Wages 344,925 356,423 367,920 Officer's Salary 42,000 43,680 45,420 Rent 7,500 7,500 7,500 TOTAL OPERATING EXPENSES 462,705 472,103 484,080 OPERATING PROFIT 2,670 48,388 87,598 NET PROFIT 2,670 48,388 87,598 The analysis of the projected income statement for three years is detailed below: Revenue: The business deals and serves meals which include foods and beverages. The restaurant serves food items like burgers, apple pies, nachos and cheese and salads etc, while it mainly serves beverages and soft drinks with the meal. This makes two main products as the revenue generating which are food revenue and beverages revenue. Food & Beverages Revenue: The food revenue constitutes around 65% to 75% of the total revenue. We analyzed that on an average a customer spends around $6 on an order. Since we have no information about the units of sales and what items of food are preferred and sold we shall assume that out of the revenue received from each customer on an average, a portion of average selling price of food items can be taken as revenue from the food. Similarly for the beverages no information regarding the number of units sold is given, therefore we shall take the revenue as a portion of average selling price of beverages. The beverages ranges from a price range of $1.29 to $ 1.49; this means that out of the total $6 spend on an order by a customer $1.29 to $1.49 will be spent on beverages, which makes around 25% to 35% of the average order that is $6. Rest 65% to 75% of the remaining revenue will be generated from food items. Based on this assumption in year 1, if there are 300 customers everyday and the business operated 365 days a year and an average customer spending is $6, the food revenue on an estimate can be around 77% which makes $505,890 and the remaining 23% can be ...Show more
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Financial Management of a Small Burger Restaurant Coursework”, n.d.)
Retrieved from https://studentshare.net/finance-accounting/60810-financial-management-of-a-small-burger-restaurant
(Financial Management of a Small Burger Restaurant Coursework)
https://studentshare.net/finance-accounting/60810-financial-management-of-a-small-burger-restaurant.
“Financial Management of a Small Burger Restaurant Coursework”, n.d. https://studentshare.net/finance-accounting/60810-financial-management-of-a-small-burger-restaurant.
  • Cited: 0 times

Summary

Financial Management of a Small Burger Restaurant Name University Financial Management of a Small Burger Restaurant Introduction: Financial projections are an important aspect and an essential in operations of any business. The company can forecast and estimate its performance by projecting financial statements which involves planning of activities into monetary terms…
Financial Management of a Small Burger Restaurant
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the coursework on your topic
"Financial Management of a Small Burger Restaurant"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

Cost and financial management
The objective of preparing this report is to measure the performance of this company and make a comparison of the same with the general industry. This paper will also analyze the performance of a competitor of WS Atkins with the aim of comparing the evaluation.
16 pages (4000 words) Coursework
Financial management
It forms the subject of a mathematical model, such that when the values of the second variables change, dependent variables also change. Independent variable is the variable that affects the values of other variables but it is not changed. In
6 pages (1500 words) Coursework
In-N-Out Burger
675). As such, the products offered were identified to be in their simplest traditional menu: burgers, fries, and milkshakes – but made from the freshest
4 pages (1000 words) Coursework
Career Trends Assignment (Restaurant and Hospitality Management)
ures of the world, multilingual skills and understanding of diverse cultural values are important to advancement and growth in the current international economy (All Star Directories, 2011). (2) With the new advancement in technology, people are affected significantly where the
2 pages (500 words) Coursework
RESTAURANT AND CATERING MANAGEMENT
The required staff, roles, and skills required are stated in this advertisement and if you have the required meet the requirements
2 pages (500 words) Coursework
Financial management
The coupon payments which are the interest payments that will be remitted to the bond-holder after a specific period of time for example six months and the face value of the bond refers to the amount of money that the bond holder will be paid at maturity
10 pages (2500 words) Coursework
Strategic Financial Management
Currently, the company has managed to establish approximately 950 outlets (Tran 2005, 6), making one of the fastest growing businesses of its kind. In addition to this chain of pubs, the company also owns and operates Llodys No. 1 chain, as well
8 pages (2000 words) Coursework
Strategic Financial Management
However, it is essential that business managers strive at achieving the vision and mission of the business through attaining the set goals and objectives. Generally, firms often have various
8 pages (2000 words) Coursework
Strategic Financial Management 2
It further plans to use of 100% debt financing for the project. This paper will attempt to help Rattle Co in making a decision by answering at least four
12 pages (3000 words) Coursework
Strategic Financial Management 2
It further plans to use of 100% debt financing for the project. This paper will attempt to help Rattle Co in making a decision by answering at least four
12 pages (3000 words) Coursework
Comments (0)
Click to create a comment
Let us find you another Coursework on topic Financial Management of a Small Burger Restaurant for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us