Reference no: EM133186326
Question - Your first task will be to start examining the financial results for Friends & Family. The restaurant is well established and brings 70% of gross margin on CAD$475,163 annual sales. The Direct Cost of Sales includes food ingredients, supplies for the coffee/tea bar; and stock of pop and water being sold from the on-site fridge. The operating expenses stood at CAD$248,070 with 60% of it being payroll expenses that brought another CAD$22,170 of payroll taxes. Before the sale, the restaurant was fully renovated, adding a coffee/tea bar with an espresso machine. The annual depreciation expenses stood at CAD$24,000.
Being a 1000 sq. ft. venue with 2 entrances, the restaurant had to power both heating and AC, which in addition to the grill and kitchen air exhaust system added to the annual utility bill of CAD$7,200. The insurance policy cost was CAD$7,200 and there were a couple of other miscellaneous expenses, totalling CAD $2,700. The rest of expenses were recorded for marketing. The net profit margin was only 10.83% impacted by CAD$22,052 of taxes and interest of CAD$11,036. The book value of the furniture, fixtures and equipment of the restaurant was CAD$172,141 and the accumulated depreciation for the last 3 years brought the amount of the long-term assets to CAD$106,156. The end of year cash balance on the checking account was CAD$100,291. As a restaurant, the business had 0 AR and held on paying the supplier invoices due for CAD$20,705. Kamal had access to CAD$3,500 of overdraft and took over CAD$137,000 of a 3-year bank credit. At the time of purchase, the owners' capital stood at $10,000. During the year, CAD$17,071 were deducted from the retained earnings account before Kamal took over the business. At the time of the analysis, the business owner's net worth was estimated at CAD$44,356.
Required -
1. Prepare the year-to-date Income Statement for the current business and year-to-date Balance Sheet.
2. Create financial statements following generally accepted accounting guidelines for Canada.
|
Determine the number of reportable segments of entity
: Entity Agnes has operating segments from A to F. Determine the number of reportable segments of entity for Agnes
|
|
Market power from monopoly-company demand estimation
: How do you gain your career power in order to let you have power to decide your salary? how do you estimate the product's future demand?
|
|
Draw the resulting b-tree after each of the deletions
: Show the effect of deleting in order WAX, ADD, FOX and Draw the resulting B-tree after each of the deletions
|
|
Determine the company current ratio
: Andy Inc. has $15,000 in cash, $38,000 in current receivables, $18,000 in inventories, Determine the company current ratio
|
|
Prepare year-to-date income statement for current business
: The annual depreciation expenses stood at CAD$24,000. Prepare the year-to-date Income Statement for the current business and year-to-date Balance Sheet
|
|
Will robotics be continuous problem for employment
: Will robotics be a continuous problem for employment? What might be some of the costs of unemployment, to the unemployed worker and to the society
|
|
What is its price
: A bond that matures in 15 years and has a par value of Php15,000 and annual coupon payment of 165; its market interest rate is 4%. What is its price
|
|
Calculate the margin of safety ratio
: Selling price per unit 230, Variable expenses per unit 92, fixed expenses per month 621. If actual sale is 6000, calculate the margin of safety ratio
|
|
Explain concepts of capitalism and socialism
: Explain the concepts of capitalism and socialism. Identify three pros and three cons for both capitalism and socialism.
|