The three factors associated with operating funds. Case summary: T&E is a hamburger restaurant in Chicago area started in 2009 at the time of great recession. They financed its operations by themselves and with the help of third partner VN. Both the partners have work experience in McD as executives. Recognizing the need of finance function, they hired Brian as a CFO who is a former executive of McD. According to CFO cash flow is an important element in starting up a restaurant because of the known costs such as rent, payroll, inventory, taxes and utilities as these are recurring and relative costs incurred on weekly or monthly basis. T&E uses a technological inventory management and control system for the perishable nature of foodstuffs associated with the restaurant business. CFO explains that the restaurant has net 14 credit terms with its food vendors. This means that the invoice is to be paid within 14 days after the receipt of the goods. It is a form of financing which allows company to turn the inventory once or twice during the 14 day period. According to Eddie, the goal is to increase the stores by 10 and then look at franchising the operation. Characters in the case: The characters that in the case are T&E, VN and BG Adequate information: According to Eddie, the goal is to increase the number of stores by 10 and then look at franchising the operation. When considering the location where to open a new operation he indicates that the careful consideration is to give demographics of area like average income of people, age and population.

Question

Want to see the full answer?

Answer 1

Question

Chapter 18, Problem 1VC

Summary Introduction

To determine: The three factors associated with operating funds.

Case summary: T&E is a hamburger restaurant in Chicago area started in 2009 at the time of great recession. They financed its operations by themselves and with the help of third partner VN. Both the partners have work experience in McD as executives. Recognizing the need of finance function, they hired Brian as a CFO who is a former executive of McD. According to CFO cash flow is an important element in starting up a restaurant because of the known costs such as rent, payroll, inventory, taxes and utilities as these are recurring and relative costs incurred on weekly or monthly basis.

T&E uses a technological inventory management and control system for the perishable nature of foodstuffs associated with the restaurant business. CFO explains that the restaurant has net 14 credit terms with its food vendors. This means that the invoice is to be paid within 14 days after the receipt of the goods. It is a form of financing which allows company to turn the inventory once or twice during the 14 day period. According to Eddie, the goal is to increase the stores by 10 and then look at franchising the operation.

Characters in the case: The characters that in the case are T&E, VN and BG

Adequate information: According to Eddie, the goal is to increase the number of stores by 10 and then look at franchising the operation. When considering the location where to open a new operation he indicates that the careful consideration is to give demographics of area like average income of people, age and population.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Identify potential ethical challenges in producing and marketing your company's skincareproducts from jamaica in europe and associated countries like germany italy and france and how your team will address them.

Make a total of 19-20 slides below the topic and give some briefs, which I should say as a speech for presentation time with that slide. (a) title slide(b) the content of the presentation and the presenter (4presenter-for each 4-5 slide) for each section(c) Topic: Factor what is more important to Gen X,Y,Z in their receptivity to international assignments. Critically discuss how factors such as culture, personality, and skills/experience may impact generational differences. The presentation should discuss how managers can use human resource planning to attract a multigenerational workforce interested in international career assignments.it considers the internal and external labour supply

This question is regarding business negotiation BUS356 in SUSS. The case below is extracted from Harvard Business Review Case Study “Move Fast,but without Bias: Ethical AI Development in a Start-up Culture”. It is important to support your answers with specific examples based on thescenario given in the case study below to demonstrate your understanding andapplication of the relevant concepts. You may make reasonable assumptions, aspart of your analysis. Answers must be supported with theoretical models and concepts from therecommended textbook, Lewicki, R. J., Saunders, D. M. & Barry, B. (2021). Essentialsof Negotiation (7th ed). New York: McGraw-Hill International Edition and coursematerials. Please provide useful links and citations for learning purposes.