TEST #$2$

Instructions

Using the information provided to you below for the new start$-$up restaurant, "Adib$$s Burgers and Chicken" $($or $$A$.$B$.$C$.$ for short$),$ students must complete the following ledgers, and answer the following associated questions:

The business' opening Balance Sheet

Year $1$ Income Statement

End of Year $1$ Balance Sheet

Year $1$ Statement of Cash Flow

$-$ Good Luck! $-$

Opening Account Balances

$-$ The business currently holds a cash balance of $5,945$

$-$ Company holds $9,800\text{'}$s worth of inventory at all times

$-$ All appliances owned by business; estimated total value of $92,000$

$-$ China and glassware valued at $12,500$

$-$ equipment, furniture and fixtures estimated value of $133,000$

$-$ prepaid FIRST AND LAST months$$ rent at $9,350$ per month $($in year $1,$ we'll pay $11$ months of rent, and keep only the LAST month on the balance forever$)$

$-$ We own a new catering truck, valued at $$77,162$

$-$ we have accumulated $3,002$ in accounts payable

End of Year $1$

$-$ Earned total Revenues of $2\mathrm{.}8$ Million $(36\mathrm{.}5\%$ burgers, $29\mathrm{.}9\%$ chicken, $19\%$ soft drinks and side dishes, and the rest is merchandise$)$

$-$ At the start of the year, we take out a NEW Bank Loan of $515,000,$ with a fixed interest fee of $97,850*$The term on the loan is $4$ years, and payments begin this year

$-$ Cost of goods sold' $($food and beverage cost$)$ was $29\%$

$-$ Costs of merchandising $($merchandising costs$)$ are an average of $80\%$

$-$ Salaries paid at $$404,158$

$-$ Other operating expenses at $148,945$

$-$ Rent payments are made

$-$ Holiday Bonus given to each employee at the end of the year of $$300,$ there are $16$ employees

$-$ Monthly payments towards loan

$-$ Accounts payable settled from last year, and new balance of $3,843$ is incurred

$-$ increase inventory pars each year by $7\%$

$-$ Tax Rate is $17\mathrm{.}5\%($last year balances are paid in current years$)$

$-15\%$ of Profit paid out in dividends

$-$ The rate of dep. on the truck is $22\%/$year

$-$ Glassware and china depreciate at $15\%/$year

$-$ All other fixed assets depreciate at $10\%/$year