Reference no: EM13933338
You have always wanted to own a restaurant and have now decided to go into business, purchase a building, and open an Italian Bistro. The items listed below provide information regarding the purchases you will need to make to start your business.
The building and the land it sits on will cost $250,000 and you have 20% to put down on the property. Annual taxes are $6,000 and fire and liability insurance is $3,600.
You have $150,000 of additional funds to allocate for refurbishing the grounds, building structure, interior design, and kitchen. 10% of the savings will be allocated to the grounds, 20% to the building’s structure, 20% to update the interior design, and 50% for kitchen installation and fire suppression systems.
Tables are $200 each for 2 tops, $300 each for 4 tops, and $500 each for 6 tops. You plan to purchase eight (8) 2-top tables, six (6) 4-top tables, and ten (10) 6-top tables. Chairs cost $50 each. You are planning on being able to seat 100 people in the restaurant at a time and need 10 extra chairs. Silverware, tablecloths and napkins cost a total of $6,000, serving utensils cost a total of $3,000, and glassware cost a total of $5,000.
Place/plate settings cost $35 each. You need to purchase three times the number of planned seats for turn-around and breakage. (Remember you are planning for 100 people in your restaurant.)
Servicing carts, cooking equipment, prep tables, storage containers, and other supplies will cost a total of $16,000.
Research suggests that the average receipt total per person is $12.80 and the average cost per meal is $6.86 for the Italian restaurants in your area. The research also suggests that tables are turned over for new customers between 13 and 21 times a day in your area, and that restaurants have between 40% and 60% occupancy fill rate each day.
|
Financial statement impact of a lease
: GEORGE's Warehouse signed a six-year capital lease on January 1, 2014, with payments due every December 31. Interest is calculated annually at 10%, and the present value of the minimum lease payments is $16,425. Calculate the amount of the annual pay..
|
|
Estimate the unlevered value of firm
: Pennsylvania steel, one of the largest steel companies in the united States, is considering whether it has any excess debt capacity. The company has $527 million in market value of debt outstanding and $1.76 billion of market value o equity. Estimate..
|
|
What is the companys pretax cost of debt
: Drogo, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 12 years to maturity that is quoted at 105 percent of face value. What is the company’s pretax cost of debt? If the tax rate is 35 percent, what is the a..
|
|
Each plan as compared to that for an all-equity plan
: Haskell Corp. is comparing two different capital structures. Plan I would result in 13,000 shares of stock and $100,000 in debt. Plan II would result in 10,500 shares of stock and $150,000 in debt. The interest rate on the debt is 10 percent. a. Igno..
|
|
Installation and fire suppression systems
: You have always wanted to own a restaurant and have now decided to go into business, purchase a building, and open an Italian Bistro. You have $150,000 of additional funds to allocate for refurbishing the grounds, building structure, interior design,..
|
|
What is the companys target debt-equity ratio
: Fama’s Llamas has a weighted average cost of capital of 11 percent. The company’s cost of equity is 13 percent, and its pretax cost of debt is 9 percent. The tax rate is 40 percent. What is the company’s target debt−equity ratio?
|
|
What is the pretax cost of debt-aftertax cost of debt
: Jiminy’s Cricket Farm issued a bond with 25 years to maturity and a semiannual coupon rate of 12 percent 3 years ago. The bond currently sells for 94 percent of its face value. The company’s tax rate is 35 percent. What is the pretax cost of debt? Wh..
|
|
Prepare an income statement and balance sheet
: Open appropriate ledger T-accounts, and record the events in the accounts.
|
|
Cmpanys business model
: Consider a local business who's service I use frequently. What are the main components of this companys business model? I have to write a 400 to 500 wotd response in which the following has to be included describe business ad commercr, business as o..
|