Financing and leasing restaurant management – 10 questions

Please answer these 10 questions I have below. I have attached the whole book, you must get the answers from Chapter 16 Financing and Leasing. Assignment is due 7/22/2017 tomorrow at 5pm eastern time.

 

1.In drawing up a sales budget for a casual Italian restaurant, what percentage

of weekly sales should be forecasted for Friday and Saturday evenings?

2.A casual restaurant with a $1-million sales volume should have how many

full-time equivalent employees?

3.What labor, food, beverage, and occupancy costs should the above restaurant

have? Express your answer as both a percentage of sales and as a dollar

figure.

4.Aside from its value in planning, why is it essential to do a budget forecast

of sales, costs, and profit?

5.Suppose that after forecasting sales and deducting expenses, you are left

with 3 percent operating profit before interest charges and taxes. What would

you do?

6.List, in order of priority, four sources of financing you would approach in

seeking funds for your restaurant.

7.In seeking a construction loan, would you expect to have the entire amount

of the loan given to you in a lump sum? Explain.

8.The procedure in seeking a loan from the Small Business Administration is

fairly elaborate. What is the usual sequence for this process?

9.The recommendation is made to “stockpile your credit.” What does this mean?

10.Is it possible (not probable) to start a restaurant without any cash of your own? Explain.

 

 

 

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