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

Please help with a Cover letter for questionnaires. Research Title: Investigation on the impact of Technology in the Work Place.

Read the following statement and then answer the questions that follow Research ethics are the set of ethics that govern how scientific and other research is performed at research institutions or organisations and how it is disseminated. Required a) Outline the importance of research ethics in the research study. (5 marks) b) Elaborate on the ethical codes that affect the research process generally. (20 marks)

Study the figure below of three students who are planning enquiries on the labour market in Botswana Student A I want to investigate the relationship between employee's job satisfaction and productivity Student B Student C I am planning to investigate the experiences of female domestic immigrant workers My enquiry is on the role of small and medium sized enterprises in creation of employment. Required Choose one of the students from the figures below and prepare a research proposal. Your answers should include the following aspects: a) An appropriate title. (2 marks) b) At least three (3) research questions/hypothesis for your study. (3 marks) c) Preliminary literature review. (5 marks) d) What method would you use for your study and why? (5 marks) e) Identify difficulties which you think the student you have chosen might have when carrying out this research. (6 marks)