Our price is lower then that fast food restaurants around us. Assumption that amount sold in one year will be about 144,075.22ħ Competition As of today there are only 2,728 Italian buffets in the whole United States. Italian buffet makes $9 billion sales in one year. Information is based on research on locations that sell the same products.
Definition of pro-financial statement and pro- forma Including the first year well have positive ending balances. That is, as if the states of the world were different from that which is in fact the case.
Restaurant budget planning pro#
Pro forma describes a presentation of data, typically financial statements, where the data reflect the world on an 'as if' basis. The Internal Rate of Return (IRR) was figured by taken the initial investment and dividing it by the annual cash inflows.ĥ Financial Statements A Pro-Forma Financial statement is a financial statement that a company prepares to consider the effects of a potential activity. This amount was then divided by the initial investment. The Rate of Return (ARR) was calculated simply by using the cash inflows for the 5 year period and adding in the depreciation for the equipment. The total was then taken and divided by the initial $900, investment. This created the present value of cash inflows. Discount factors for a five year period were taken from present value tables. The discount rate for the required rate of return is 10%. In deciding on the initial investment, the Net Present Value (NPV) was calculated. The initial up-front investment includes $900,000 investment. served buffet style,Ĥ Budget Preparation Five year planning horizon is used.
middle to lower-middle class families with children, adults and seniors, located in Orlando, Florida. Our objective is to generate an income of at lest $40,000 per year, starting sometime in the second year of the operation, as well as profit that is at least 2% of sales Restaurant targets middle to lower-middle class families with children, as well as adults and seniors, Our Italian food will be served in buffet style The company will operate from 10:00 am to 9:00 pm all 7 days a week single-location, sit-down Italian restaurant - goal is to generate an income of $40,000 per year, -, as wells as profit that is at least 2% of sales. Methods and Assumptions Competition Geographic Target Sales Forecast Capital Expenditures Budget Cash Flow NPV Rate of Return Payback Period Pro Forma Income Statement Pro Forma Cash Flow Pro Forma Balance Sheetģ Objectives Papa Geo’s Restaurant will be a single-location, sit-down Italian restaurant located in Orlando, Florida. 1 Papa Geo’s Restaurant Budget Proposal For 2012-2016īUSN-278 Budgeting and Forecasting sessionB Professor Brandon Foor DeVry UniversityĢ Table of Contents Objectives Budget Preparation Financial Statements
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