Thaifoon Restaurant

Question:Calculate the projected yearly food and drink sales. Show your forecast model.

I have uploaded an image of how I calculated the revenue. However, I am not confident that it is correct because the numbers do not look correct when preparing the projected income statement and balance sheet. If it is not correct, please help me figure out the projected sales yearly food and drink sales.

\fThaifoon Restaurant.pdf (SECURED) - Adobe Acrobat Reader (64-bit) X File Edit View Sign Window Help Home Tools Thaifoon Restauran A 1 4 4/ 8 100% - - Although Phimphrachanh knew that his seating arrangement would determine his capacity, which would Search tools thereby affect sales projections, he was interested in keeping the number of seats at or below 30 since this avoided legal regulations requiring a licensed engineer design, a second fire escape and other costly items. Phimphrachanh was also keen on leaving enough space between the tables and chairs for customers and ' Export PDF servers to walk. Any design should allow for a quick modification to accommodate larger or smaller groups. The tables chosen for the restaurant measured 2.5 feet by 2.5 feet, and a 1.5 by two-foot space was needed for each chair. Two other seating options included booths or benches, which could be any length Adobe Export PDF and up 1.5 feet wide. Convert PDF Files to Word or Excel Online Financial Projections Select PDF File Thaifoon Restaurant.pdf In addition to investing $10,000 of his own savings, Phimphrachanh's aunt and mother had agreed to grant X him a $90,000, unlimited-term, no-interest loan to start the business. They offered him these favorable terms because they were convinced that his venture would be successful. They also wanted to show their Convert to appreciation to him for helping with the existing restaurants. Microsoft Word (*.docx) Furnishing the new restaurant would use approximately $85,000 of these funds. The furnishings were to Document Language: be amortized on a straight-line basis, over five years, with no salvage value. Another $3,200 would be English (U.S.) Change used to purchase computer equipment, which had an estimated life of three years and would be amortized using the double-declining balance method, with no salvage value. Phimphrachanh would also have to make one-time purchases of a liquor licence and a master business licence, amounting to $1,055 and $350, respectively. These intangibles would be amortized using the straight-line method over five years. Convert - Phimphrachanh estimated sales based on the number of turns" each day during the lunch and dinner hours (see Exhibit 3). The restaurant would be open 52 weeks each year. Phimphrachanh projected an average View Adobe's cloud storage Files lunch bill would amount to $12, of which $10 would be for food and $2 for beverages. Similarly, he projected an average bill at dinner would amount to $25 per person, of which $20 would be for food and $5 Create PDF for beverages. Variable costs would include food (37 per cent of food sales); labor (30 per cent of total sales), drink (25 Comment per cent of drink sales), and credit card fees (two per cent of credit card sales, which were projected to be (75 per cent of total sales). All other anticipated annual costs are listed in Exhibit 4. Lu Fill & Sign Phimphrachanh planned to keep approximately 15 days of food inventory and approximately seven days of drink inventory on hand. Upon moving in, he would have to pay his landlord the first month's rent of More Tools $1,282 along with a deposit equal to the last month's rent payment of another $1,282. He would pay his advertising, hydro, land phone, insurance, Internet, and mobile phone expenses, approximately 15 days after the invoices were received. Phimphrachanh knew that restaurant sales were difficult to forecast, given the unpredictability of Your current plan is Creative competitive and economic forces, and he wondered what his financial projections would look like if he Cloud were to fall short or exceed his sales estimation by 20 per cent. If the restaurant's results were to fall drastically below expectations, there was no formal contingency plan in place. Learn More& Thaifoon Restaurant.pdf (SECURED) - Adobe Acrobat Reader (64-bit) X File Edit View Sign Window Help Home Tools Thaifoon Restauran 1 4 5/ 8 JI + 100% 9 40 Page 5 9B07B001 Search tools DECISION ' Export PDF Phimphrachanh was eager to open Thaifoon Restaurant. He would consider his assessment of his own capabilities, the attractiveness of the industry, the suitability of the location, the seating plan selection and Adobe Export PDF related financial projections, including a projected income statement and balance sheet for the year ending December 31, 2006, before making a final decision. His aunt had mentioned that if Phimphrachanh Convert PDF Files to Word or wanted to be wealthy, he would have to open his own business. To this end, one of his financial goals was Excel Online to be able to draw $100,000 from the business by the end of fiscal year 2006. His expectation was loosely Select PDF File based on his family's Thai restaurant experience in London. He appreciated the wisdom and support of his mother and aunt, and he wanted, above all, to make sure that their financial commitment to his success was Thaifoon Restaurant.pdf X protected. Convert to Microsoft Word (*.docx) Document Language: English (U.S.) Change Convert View Adobe's cloud storage Files Create PDF Comment Lu Fill & Sign More Tools Your current plan is Creative Cloud Learn More& Thaifoon Restaurant.pdf (SECURED) - Adobe Acrobat Reader (64-bit) X File Edit View Sign Window Help Home Tools Thaifoon Restauran A Search tools Exhibit 3 PROJECTED SALES ' Export PDF Turns per Day Adobe Export PDF Monday Tuesday Wednesday Thursday Friday Saturday Sunday Convert PDF Files to Word or Lunch 1.0 1.0 1.0 1.0 1.0 closed closed Excel Online Dinner 1.5 1.5 1.5 1.5 2.5 2.5 2.0 Select PDF File Source: Company files. Thaifoon Restaurant.pdf X Exhibit 4 Convert to Microsoft Word (*.docx) PROJECTED ANNUAL COSTS Document Language: Amortization* $ 19,414 English (U.S.) Change Rent 15,384 Advertising 10,000 Hydro 8.000 Convert Truck 6,840 Phone, Yellow Pages 6,480 Donations and sponsorships 3,000 View Adobe's cloud storage Files Annual repairs and maintenance 3,000 Printing 2,000 Laundry 2,000 Create PDF Miscellaneous 2,000 Cleaning supplies 1,950 Comment Gas 1,920 v Website 1,600 1,200 Lu Fill & Sign Insurance Internet 720 Accounting services 650 More Tools Mobile phone 552 Staff uniforms 500 Office supplies 500 ADT (security system) 360 TOTAL $ 87.789 Your current plan is Creative Cloud *(85,000 + 5 years) + (3,200 x 2/3 years) + ([1,055 + 350] + 5 years) = $19,414 Learn More Source: Company files