Case study Gary hart Assignment Example | Topics and Well Written Essays - 2250 words

brass study Gary hart - Assignment Example12,000 incurred the first base week Analysis of revenues Revenue per twenty-four hour period 75%*60*24=?1,080 Payment in cash per day 50%*1,080=?540 Revenue per month 1,080*24=?25,920 Revenue per quarter 25,920*3=?77,760 50% of daily sales argon credit sales collectable four weeks later Assumptions 1. Gary purchases ingredients once every month. 2. Waiting staff salaries and social security costs argon payable every month. a. Garys Restaurant Trading cash budget For the year ended celestial latitude 31, XXXX Quarter total 1 2 3 4 ? ? ? ? ? Cash b/f 48,484 126,364 213,248 sum receipts Cash sales 38,880 38,880 38,880 38,880 155,520 Collection from credit sales 77,760 77,760 77,760 77,760 311,040 Total cash available (A) 116,640 165,124 243,004 329,888 854,656 less(prenominal) disbursement Kitchen staff 14,300 14,300 14,300 14,300 57,200 Waiting staff 3,432 3,432 3,432 3,432 13,728 Social security costs 5,200 5,200 5,200 5,200 20,800 Utilit ies 0 2,600 2,600 2,600 7,800 Rent 30,000 10,000 0 0 40,000 Council tax 2,000 2,000 2,000 2,000 8,000 ad 12,000 0 1,000 1,000 14,000 Cost of ingredients 1,224 1,224 1,224 1,224 4,896 Total (B) 68,156 38,756 29,756 29,756 166,424 Cash balance (A-B) 48,484 126,364 213,248 300,132 688,228 b. ... ? Assets Current assets Debtors 9,720 pay council tax 2,000 Fixed assets 50,000 61,720 Liabilities Creditors 0 Utilities due 650 Capital 61,070 61,720 Assumptions 1. The restaurant go forth pay all bills as they fall due, therefore there will be no creditors. 2. Utilities will be due since they are paid for the at the beginning of the following quarter therefore those falling due December will be paid for beginning of January the following financial year. 3. I approximated the value of the restaurants stiff assets to be ?50,000 by the end of the first year. d. Garys Restaurant Weekly cash budget For the first month of operation Week 1 2 3 4 ? ? ? ? Cash b/f (27,240) (24,000) (21,168) Add re ceipts Cash sales 3,240 3,240 3,240 3,240 Credit sales 3,240 Total cash available (A) 3,240 (24,000) (20,760) (14,688) less(prenominal) disbursement Kitchen staff 4,766.67 Waiting staff 1,144 Social security costs 1,733.33 Rent 10,000 Council tax 2,000 Advertizing 12,000 Cost of ingredients 408 Total (B) 30,480 408 7,644 Cash balance (A-B) (27,240) (24,000) (21,168) (22,332) Assumptions 1. Ingredients are ordered for and delivered within the first week, whereas their payment is make in the third week. 2. Staff salaries and security costs are paid for in the fourth week, delusive to be the end of month. 3. Garys restaurant will begin its operations in January, hence being the first moth of the restaurants operations. Working cash is the amount of money required for day to day operations within a business. This is a business capital in liquid currency that is unavoidable for purchasing assets to be used by the business and meeting various obligations of the business. Working cash o f a business can also refer to the ability of a business to meet its liabilities and expenses that