Lucy Quarantina is the owner and manager of a catering company. QCS provides complete meals (breakfast, lunch and dinner), as well as an assortment of hot and cold appetizers and drinks, for groups of 30 to 300. QCS receives orders in three main ways: e-mail, telephone and personal office consultation. In some cases, the customer has an idea of what he/she wants; in others, the customer relies on Lucy’s expertise to select appropriate items. For each catering job, Lucy prepares an estimate for the client which is documented in a Proposal Form; she files one copy of the estimate and sends the other to the client for approval. The client may make changes to the estimate over the phone, via e-mail, or through a personal consultation. Once the estimate has been finalized, Lucy prepares a Catering Contract for the client’s signature. She requires 50% deposit with the signed contract; the remaining catering fees can be paid within 30 days of the catering event. Lucy accepts cash and checks; she does not accept credit cards. The client signs the contract and sends it back to Lucy. Lucy also signs it, files a copy for her own records, and sends a copy with both signatures back to the client. Lucy and her staff deliver the catering order as scheduled, and she bills the client through an Invoice for any remaining fees. The client pays the invoice within 30 days and Lucy deposits the funds in her bank account. Required: Prepare a flowchart for revenue and collection cycle of QCS Catering Services.
Lucy Quarantina is the owner and manager of a catering company. QCS provides complete meals
(breakfast, lunch and dinner), as well as an assortment of hot and cold appetizers and drinks, for
groups of 30 to 300. QCS receives orders in three main ways: e-mail, telephone and personal office
consultation. In some cases, the customer has an idea of what he/she wants; in others, the customer
relies on Lucy’s expertise to select appropriate items.
For each catering job, Lucy prepares an estimate for the client which is documented in a Proposal
Form; she files one copy of the estimate and sends the other to the client for approval. The client may
make changes to the estimate over the phone, via e-mail, or through a personal consultation. Once the
estimate has been finalized, Lucy prepares a Catering Contract for the client’s signature. She requires
50% deposit with the signed contract; the remaining catering fees can be paid within 30 days of the
catering event. Lucy accepts cash and checks; she does not accept credit cards. The client signs the
contract and sends it back to Lucy. Lucy also signs it, files a copy for her own records, and sends a
copy with both signatures back to the client. Lucy and her staff deliver the catering order as scheduled,
and she bills the client through an Invoice for any remaining fees. The client pays the invoice within
30 days and Lucy deposits the funds in her bank account.
Required:
Prepare a flowchart for revenue and collection cycle of QCS Catering Services.
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