solution

/in /by

Larry’s Luncheon Spot is a chain of cafeteria-style restaurants geographically located in the southern sector of the United States. These restaurants concentrate on serving homestyle food such as meatloaf, fried chicken, mashed potatoes, barbecued foods, and apple pie at an affordable price. The primary clientele who frequents Larry’s include retirees and young professionals who are on the go and enjoy the speed of cafeteria-style service. Ms. Sarah Blackwell is a financial analyst who specializes in restaurant companies, and one of the companies in her portfolio is Larry’s Luncheon Spot. Larry’s is a public company, and analysts tend to keep a watchful eye on financial ratios to determine the strength of the company.

 

 
"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"

solution

/in /by

Eugene did not prepare a cash budget and does not use the CP3 system at his hotel. He finds himself short of cash and is about to play the float by sending in his accounts payable checks on their due date. By doing so, the payments will be in the mail and will take at least one additional day to reach his suppliers and then another day for them to process the checks. As of October 28, 2004, a new federal law, called Check 21, went into effect. Check 21 is designed to enable banks to process more checks through an electronic process rather than using paper checks. Electronic processing is more efficient and less costly. Do a search on the Internet on the Check 21 law. Is this a fair rule for the consumer? Is this a fair rule for businesses? Is Eugene being unethical in this particular case?

 

 
"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"

solution

/in /by

The Watree Lodge is struggling with cash flow and has been waiting until the last minute to pay its vendors. The Watree is a beautiful ski lodge located in a popular area, but during the summer months hotel guests become scarce and cash management becomes a major problem. Because the Watree is independently owned and operated, every once in a while, the owners must provide additional funds to carry the business over. Mr. Tom Broli has just been hired as the controller at the Watree and is in the process of analyzing all of its financial statements. The previous controller had to be replaced because he did not have an understanding of the business and knowledge of cash management. The general manager hired Mr. Broli because he heard that Tom was an experienced controller and very competent in financial management. Tom’s first goal is to look at cash forecasts to help him determine where he can make improvements. 1. From the information provided in the chart, determine available cash for the months of July, August, and September. Assume a beginning cash balance of $(10,000) in July. 2. How can this property better manage its working capital? Provide specific suggestions for Watree Lodge management.

The Watree Lodge is struggling with cash flow and has been waiting until the last minute to pay its...

 

 
"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"

solution

/in /by

The Greenville Restaurant, which is independently owned and operated by the Greenlee Family, is located in a small historical town frequented by antique shoppers and other tourists attempting to glimpse at American history. Mr. Anderson Greenlee, son of the owners, recently graduated from a hospitality program in which he focused his studies on finance and accounting. While Mr. Greenlee wants to continue the family business, he would also like to branch out and open restaurants in other locations, perhaps even franchising the Greenville Restaurant. One of his first steps in this process is to evaluate the state of the restaurant’s working capital. He needs to get the current restaurant into good financial shape before venturing out and opening additional stores. Even though Anderson’s parents are good businesspeople, finance and accounting are not their strongest areas. Upon examining their records, he notices the following: ■ The Greenlees currently manage two bank accounts for their restaurant. One account is for immediate access to pay bills and does not draw any interest. The second account is strictly for savings to pay for problems that may arise, such as an oven going out. This savings account has an average balance of $10,000 and receives 0.5% interest. ■ The restaurant does a significant amount of catering business for local companies and allows them to pay half the bill up front. A bill is sent for the remaining 50%, which is payable within 30 days. Approximately 80% of these customers mail in their payments. ■ The Greenville Restaurant accepts MasterCard, VISA, and American Express credit cards as a form of payment. American Express is currently charging the restaurant a 6% fee on all transactions, while MasterCard and VISA are charging 5.5%. 1. Evaluate Greenville Restaurant’s banking situation. Can you give any tips to the restaurant to better manage their situation? 2. As the Greenlees open new restaurants what banking services are available to them? 3. How can the Greenlees better manage their credit card payments? How can they better manage fees as the business grows?

 

 
"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"