September 1, 2019 Food inventory value: $6,250

September 30, 2019 Food inventory value: $5,100

Food purchases during September 2019 $11,100

Sales for September 1 30, 2019 $39,925

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September 1, 2020 Food inventory value: $5,860

September 30, 2020 Food inventory value: $5,450

Food purchases during September 2020 $13,730

Sales for September 1 30, 2020 $40,920

Answer the following questions given the above information:

A. What is the inventory turnover rate of food for September 2019?

B. What is the inventory turnover rate of food for September 2020?

C. How many days of business does the September 2019 inventory support?

D. How many days of business does the September 2020 inventory support?

E. What (if anything) can be observed about the differences in inventory turnover rate and inventory supply for September 2020 as compared to September 2019?

The following information applies to the mythical Really Busy Restaurant and Bar:

For the period food revenues are $77,625 and beverage revenues are $19,880. The actual food cost in dollars is $1,620 more than the standard/budgeted food cost. The actual beverage cost percentage is 2.60% higher than the standard/budgeted beverage cost.

F. $1,620 variance in food cost = _____________%

G. 2.60% variance in beverage cost = $ _______________

H. Which cost area (food or beverage) is likely to have the most significant cost control related impact on overall cash flows and profitability and why (explain your answer)?