Spreadsheet Assignment #1 The Restaurant Business Assignment: 1. Create 3 years

Question

Spreadsheet Assignment #1

The Restaurant Business

Assignment:

1.       Create 3 years of the following financial statements required for a business plan.

a)      Monthly Cash Budgets

b)      Year-End Income Statements

c)       Year-End Balance Sheets

Notes:

1.       This is a start-up restaurant business.

2.       It is cash-based (i.e., there are no accounts receivable or accounts payable)

3.       Assume it is a sole proprietorship, so there are no corporate taxes.  (the income of the business is taxes as personal income to the business owner).

Sales Forecast 1996

Month

Sales

January

$22,814

February

24,399

March

25,984

April

27,569

May

30,769

June

32,324

July

35,494

August

38,664

September

38,664

October

32,324

November

29,154

December

25,984

Assume sales grow at 10% annually in 1997 and 1998.  Maintain seasonal pattern of sales.

Salaries and Wages

Open 15 hours per day x 364 days = 5,460 hours
Part-time help will work 5 hours per day x 364 = 1,820 hours

1 Wait person

5,460 x $2.19=$11,957.40

1 Cook

5,460 x $6.00=$32,760.00

1 Dishwasher/busboy

5,460 x $4.25=$23,205.00

Part-time wait person

1,820 x $2.19=$3,985.80

Part-time cook

1,820 x $6.00=$10,920.00

Manager Salary (Owner)

$10,000.00

Total Salaries and Wages

$92,828.20

Equity Contribution

Land

$45,000

Equipment

5,000

Liquor License

2,000

Cash

5,000

Total

$57,000

Uses of Loan Proceeds
Borrow $175,000, 20 years @ 11.25% interest

Buildings

2,800 sq. ft. Building @ $47.50/sq. ft.

$133,000

Pavement of parking area

16,500

Block fence on back of property

2,500

Septic System

6,000

Water Meter

2,000

                                                        Building Total

$160,000

Restaurant Equipment

$5,000

Initial Inventory

5, 322

Misc. Start-up expenses

4, 678

Total

$175,000

Other Assumptions

  

Month

     

Sales

     

January

     

$22,814

     

February

     

24,399

     

March

     

25,984

     

April

     

27,569

     

May

     

30,769

     

June

     

32,324

     

July

     

35,494

     

August

     

38,664

     

September

     

38,664

     

October

     

32,324

     

November

     

29,154

     

December

     

25,984

  

Explanation / Answer

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