Question 5 Your client owns and operates a themed restaurant on the outskirts of a large regional town. ITEM Year ending Year ending 2018 Year ending 2017 2019 GROSS INCOME Meals 222.000 257,000 290,475 Drinks 52,000 80,337 111,121 EXPENDITURE Purchases 170,000 Wages & NI 109,230 Utilities 11,000 Business rates 6,500 Laundry 1050 Insurance 1,200 Repairs to building 500 Stationary 150 Telephone & Comms 1,800 Owners' remuneration 40,000 195,322 111,990 11,500 6,500 1,100 1,500 250 250 1850 45,000 222 299 118,667 12.000 6,500 1,050 1,500 750 260 2000 50,000 ASSETS Fixtures & fittings Stock 30,000 5,000 27,000 4,200 24,000 4.500 a) Making the necessary assumptions and any further allowances, show the two different profits valuation methods available to provide a value of the premises as a going concern. (15 marks) Answer: b) Discuss some of the difficulties and limitations involved with profit valuations leisure properties