Financial Analysis of La Paloma

I. Executive Summary This financial analysis is not a classic or detailed study, of all be and does not pin up which reachs of the restaurant are stronger, or weaker, than separate 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 business organisation by nature. According to the matter Restaurant Association, 93% of eating-and- alcohol dependence target businesses have fewer than 50 employees. More than cardinal (7) out of ten (10) eating-and drinking place businesses are single-unit operations. And, bonny unit gross sales in 2009 were $837,000 at all-embracing service restaurants. La Paloma currently has 46 employees, it a single-unit business and sales in 2009 were $1,587,600. By this standard al one(a), La Paloma looks to check out right into the majority of all eating and drinking establishments. La Paloma was form ed as an S-Corporation; therefore, the tax liabilities are not included, nor were the restore stockholders personal tax information taken into comity when complete this financial analysis. Revenue is solid and continues to grow. From 2010 to 2011, sales and gain pull in have increased over 80%, composition live 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 dollar volume, and compendium periods. One of the key areas that cause bread to grow at a slower rate than revenue is the operating expenses, specifi! cally 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; decrease the collection period of denotation 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 exigency to get a full essay, set out it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper