The following are the Income Statement and Balance Sheet of Pelican and Rotelli Restaurants (both rated two stars). Assume that you are a financial analyst and was asked by your client to evaluate the two restaurants and to give a recommendation as to which one of the two restaurants to buy over. The true fact is that your client is already in the restaurant business and he is planning to acquire another one to expand his family business. Upon acquisition, your client is going to keep all existing employees that is, the restaurant will operate as usual except for the change in ownership. This is to assure the employees that their jobs are secured but they must work hard and be professional in their job. A visit to both restaurants and talked to the present management you found the following facts: Years of operation-------- Average age of employees.. Location.... Parking area. Design of building. Patron.. Business operation hours... Pelican 15 35 outskirt plenty contemporary mostly family 10 am - 11 p.m. Rotelli 40 45 downtown town parking conventional classic colonial bldg) working people & weekends clients 8 am - 9 pm ** Note: Currently, both restaurants have internship program for the HOTEL, FOOD & CATERING major students from a local university. Over a year, 20-30 interns may pass through both restaurants and the number varies from 3 to 5 interns per semester (6 months). Each intern works 40 hours a week and paid an hourly rate of $8 besides the 3-hr course credit earned. Upon completion of their internship program, the restaurant manager would write a report to their professors on their performance. Include a COVER PAGE with title of the assignment and your name on your report. (Use Aerial font 11 single spacing) Include your calculations and the financial statements as exhibits of your report The following are the Income Statement and Balance Sheet of Pelican and Rotelli Restaurants (both rated two stars). Assume that you are a financial analyst and was asked by your client to evaluate the two restaurants and to give a recommendation as to which one of the two restaurants to buy over. The true fact is that your client is already in the restaurant business and he is planning to acquire another one to expand his family business. Upon acquisition, your client is going to keep all existing employees that is, the restaurant will operate as usual except for the change in ownership. This is to assure the employees that their jobs are secured but they must work hard and be professional in their job. A visit to both restaurants and talked to the present management you found the following facts: Include an Executive Summary page in your report. (Check out from the Internet what is an Executive Summary). A very important document that summarizes the pertinent or main reasons of your team decision or recommendation. Half to a page of summary is the maximum. Number your report and include a Table of Content Minimum 1,000 to maximum 1,500 to 2,000 words, excluding Appendix. Font: Aerial: 11. Years of operation--------- Average age of employees.. Location. Parking area. Design of building Patron. Business operation hours... Pelican 15 35 outskirt plenty contemporary mostly family 10 am - 11 p.m. Rotelli 40 45 downtown town parking conventional (classic colonial bldg) working people & weekends clients 8 am - 9 pm Hint: a) Work out the ratios (liquidity, asset management, debt leverage, profitability and investment ratio, if any) for both restaurants and compare the findings. b) Analyze the statement of cash flows with respect to Operating, Investing and Financing activities of both the restaurants. How is the cash flow position now and the future, investment and how the restaurants are being financed? ** Note: Currently, both restaurants have internship program for the HOTEL, FOOD & CATERING major students from a local university. Over a year, 20-30 interns may pass through both restaurants and the number varies from 3 to 5 interns per semester (6 months). Each intern works 40 hours a week and paid an hourly rate of $8 besides the 3-hr course credit earned. Upon completion of their internship program, the restaurant manager would write a report to their professors on their performance c) What other things (tangible and intangible) you should consider, besides the ratios, when making the recommendations. List them out in the report as things to consider. d) You already derived your findings but how to present the information to your client. How to organize and present the information on the report? (Remember. What is in the report is a reflection of you as a professional. Communication skills are highly required and ranked in today's working environment - irrespective of any professions) e) State the assumptions if your plan to use in your analysis. The following are the Income Statement and Balance Sheet of Pelican and Rotelli Restaurants (both rated two stars). Assume that you are a financial analyst and was asked by your client to evaluate the two restaurants and to give a recommendation as to which one of the two restaurants to buy over. The true fact is that your client is already in the restaurant business and he is planning to acquire another one to expand his family business. Upon acquisition, your client is going to keep all existing employees that is, the restaurant will operate as usual except for the change in ownership. This is to assure the employees that their jobs are secured but they must work hard and be professional in their job. A visit to both restaurants and talked to the present management you found the following facts: Years of operation-------- Average age of employees.. Location.... Parking area. Design of building. Patron.. Business operation hours... Pelican 15 35 outskirt plenty contemporary mostly family 10 am - 11 p.m. Rotelli 40 45 downtown town parking conventional classic colonial bldg) working people & weekends clients 8 am - 9 pm ** Note: Currently, both restaurants have internship program for the HOTEL, FOOD & CATERING major students from a local university. Over a year, 20-30 interns may pass through both restaurants and the number varies from 3 to 5 interns per semester (6 months). Each intern works 40 hours a week and paid an hourly rate of $8 besides the 3-hr course credit earned. Upon completion of their internship program, the restaurant manager would write a report to their professors on their performance. Include a COVER PAGE with title of the assignment and your name on your report. (Use Aerial font 11 single spacing) Include your calculations and the financial statements as exhibits of your report The following are the Income Statement and Balance Sheet of Pelican and Rotelli Restaurants (both rated two stars). Assume that you are a financial analyst and was asked by your client to evaluate the two restaurants and to give a recommendation as to which one of the two restaurants to buy over. The true fact is that your client is already in the restaurant business and he is planning to acquire another one to expand his family business. Upon acquisition, your client is going to keep all existing employees that is, the restaurant will operate as usual except for the change in ownership. This is to assure the employees that their jobs are secured but they must work hard and be professional in their job. A visit to both restaurants and talked to the present management you found the following facts: Include an Executive Summary page in your report. (Check out from the Internet what is an Executive Summary). A very important document that summarizes the pertinent or main reasons of your team decision or recommendation. Half to a page of summary is the maximum. Number your report and include a Table of Content Minimum 1,000 to maximum 1,500 to 2,000 words, excluding Appendix. Font: Aerial: 11. Years of operation--------- Average age of employees.. Location. Parking area. Design of building Patron. Business operation hours... Pelican 15 35 outskirt plenty contemporary mostly family 10 am - 11 p.m. Rotelli 40 45 downtown town parking conventional (classic colonial bldg) working people & weekends clients 8 am - 9 pm Hint: a) Work out the ratios (liquidity, asset management, debt leverage, profitability and investment ratio, if any) for both restaurants and compare the findings. b) Analyze the statement of cash flows with respect to Operating, Investing and Financing activities of both the restaurants. How is the cash flow position now and the future, investment and how the restaurants are being financed? ** Note: Currently, both restaurants have internship program for the HOTEL, FOOD & CATERING major students from a local university. Over a year, 20-30 interns may pass through both restaurants and the number varies from 3 to 5 interns per semester (6 months). Each intern works 40 hours a week and paid an hourly rate of $8 besides the 3-hr course credit earned. Upon completion of their internship program, the restaurant manager would write a report to their professors on their performance c) What other things (tangible and intangible) you should consider, besides the ratios, when making the recommendations. List them out in the report as things to consider. d) You already derived your findings but how to present the information to your client. How to organize and present the information on the report? (Remember. What is in the report is a reflection of you as a professional. Communication skills are highly required and ranked in today's working environment - irrespective of any professions) e) State the assumptions if your plan to use in your analysis