Financial Analysis of La Paloma

I. Executive Summary This m startary analysis is non a classic or detailed study, of all be and does not pin up which reachs of the restaurant are stronger, or weaker, than opposite areas. This analysis is ground upon the balance sheet and income statements provided by La Paloma for the periods of 2007 through, and including, 2011. Restaurants are a high volume ancestry by nature. According to the matter Restaurant Association, 93% of eating-and- alcohol dependance target businesses have fewer than 50 employees. More than seven-spot (7) out of ten (10) eating-and drinking place businesses are single-unit operations. And, honest unit gross sales in 2009 were $837,000 at practiced service restaurants. La Paloma currently has 46 employees, it a single-unit business and sales in 2009 were $1,587,600. By this standard alone, La Paloma looks to belong right into the majority of all eating and drinking establishments. La Paloma was formed as an S-Corpora tion; therefore, the tax liabilities are not included, nor were the sole stockholders personal tax information taken into comity when completing this financial analysis. Revenue is solid and continues to grow. From 2010 to 2011, sales and gain increase have increased over 80%, composition equal of goods sold increased 87%.

A jazz financial analysis of La Paloma reveals a different generate than one of growth and strength, especially in the area of stock-taking costs, inventory derangement, and hookup periods. One of the key areas that cause bread to grow at a slower rate than revenue is the operat ing expenses, specifically wages. Before! La Paloma entertains the idea of expansion into another area of the city, it is highly recommended that the owners lower inventory costs; increase the turnover of existing inventory; shine the collection period of acknowledgment sales, or eliminate credit sales altogether; and decrease the cost associated with payroll. Considering La Paloma is an S-Corporation and not a public restaurant, industry...If you motivation to get a full essay, set out it on our website: OrderCustomPaper.com

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