Monday, October 31, 2016

Week 4 EOC: Chapter 5 Question 2

a. Did the change in Cash reflect a Source or a Use of funds? What was the amount of that change?
b. Did the change in Net Receivables reflect a Source or a Use of funds? What was the amount of that change?

c. Did the change in Notes Payable reflect a Source or a Use of funds? What was the amount of that change?

d. Did the change in Retained Earnings reflect a Source or a Use of funds? What was the amount of that change?

e. What was the total amount of Sources and Uses of Funds?

Answers:

a.  The change in Cash reflected a use of funds. The amount of change was $14,000 from cash. This is designated as a use because it is an outflow of cash "Sources represent inflows and uses represent outflows of funds for the hospitality business." (Dopson 147). 

b. The change in net receivables reflected a use of the funds. The total amount changed was $40,000 from net receivables.

c.  The Change in Notes Payable reflected a use of funds. The total amount changed was $44,000 in notes payable.

d.  The change in retained earnings reflected a source of funds. The total amount changed was $104,000 in retained earnings. The distinction of whether it was a use or source comes down to "Retained earnings represent the accumulated account of profits over the life of the business that have not been distributed as dividends. If your retained earnings increases, that means you have increased your net income for the year, thus providing a source of funds." (Dopson 152). 

e.  The total amount of sources and uses balanced out, with each having $743,000 in their respective categories. "If a business is not considered by lenders and investors to be a going concern, that business will likely find that its ability to borrow money is severely diminished."(Dopson 147).


Work Cited: 
Dopson, Lea R. Managerial Accounting for the Hospitality Industry. Wiley, 09/2008. VitalSource Bookshelf Online.

Week 4 EOC: Chapter 4 Question 3

a. Compare Rachel’s Cash % with the chain’s %.  Is it higher or lower?  What might this mean?

b. Compare Rachel’s Inventories % with the chain’s %.  Is it higher or lower?  What might this mean?

c. Compare Rachel’s Accounts Payable % with the chain’s %.  Is it higher or lower?  What might this mean?

d. Compare Rachel’s Notes Payable % with the chain’s %.  Is it higher or lower?  What might this mean?

Answers:

a. Rachel's cash percentage is higher than the chain's average percent for cash which is 6.7% where Rachel's is at 18.9%. I believe this means that as an owner of a franchise within the chain Rachel's priorities has made her operate her business at a higher standard to ensure her own success. This can be show by her equity "The balance sheet is designed to show the amount of a business owner’s free and clear ownership"(Dopson 115). 

b. Rachel's inventories percentage is higher than the chain average percentage which is 1.3%, where Rachel's is at 11.4%. Though it is wise, I think that having such a high percent in inventory can become a threat, though at the current state it still seems to be managed. As a surplus can be useful especially if they are going into their slow periods "It is clear, however, those who operate a business must consistently have sufficient cash on hand to pay their employees, their vendors, and the taxes owed by the business" (Dopson 117). 

c. Rachel's accounts payable percentage is higher than the chain average percentage which is 10.5% where Rachel's is at 11.3%. This one of the areas where being well over is understood based on the business the company seems to be doing more than the average. The fact it is only slightly over the chain average while the other are more of a positive to be higher. This puts this store in good position with their vendors "it would not be unreasonable for these vendors to ask to see their customers’ respective balance sheets before a decision was made regarding the wisdom of extending credit to them."(Dopson 117). 

d. Rachel's notes payable percentage is higher than the chain average percentage which is 1.1% where Rachel's is at 2.5%. This is just the trend of the overall balance sheet as it matches the trend shown with account payables with only being slightly higher and being accountable to the fact the over all company seems to be doing more business over the chain average.


Work Cited: 
Dopson, Lea R. Managerial Accounting for the Hospitality Industry. Wiley, 09/2008. VitalSource Bookshelf Online.

Friday, October 21, 2016

Week 3 EOC: Best Restaurant Experience

The best restaurant experience that I have ever had is from a restaurant in Chicago, IL called Heaven on Seven. "Jimmy's goal was then and is now for "Heaven on Seven" to be the best Louisiana style restaurant outside of New Orleans."(http://www.heavenonseven.com). I believe he has achieved that goal, but I couldn't say for sure as I have never actually been to New Orleans. But the three times that I have been able to go here, I have been extremely impressed with the food. 

There isn't one specific time that stands above the rest, as each had their own merits to why I liked them. The first time I went there it was the first time I had something other than ramen"The most problematic nutrient is sodium. This noodle product has 1170mg of sodium, over 50% of the recommended daily allowance. Yikes." (fooducate.com) or Mcdonalds in almost nine months and the food lived up to the restaurants name. The second time was for my graduation dinner and was shared with my family, a friend of mine and his family. The atmosphere that the restaurant had with all the different decorations and hot sauce bottles helped to smooth over what had the potential to be a very awkward dinner. 

Sadly though the third experience was when I was moving to South Carolina and I wanted to meet up with some friends on the way through Chicago. I found out they had closed the location I had enjoyed going to, but they still had two others. The second location didn't have the same open feeling but still had all the charm. "The right color goes a long way toward setting the desired mood, whether it's bright white walls and green accents that represent nature for a vegetarian restaurant or rich wood tones and warm paint colors for a British-style pub."(chefs.edu). The shift in location though had no effect on the other factors of the restaurant, the food and staff were amazing. So though it wasn't just one time each was amazing in their own right.   


Work Cited: 
http://www.heavenonseven.com/
http://www.fooducate.com/app#!page=post&id=57A352B3-20A1-076D-4F78-85661772C8BA
http://www.chefs.edu/culinary-central/14/10/five-tips-for-creating-a-great-atmosphere-in-a-restaurant

Monday, October 10, 2016

Week 2 EOC: Chapter 2 Question 4


a. Lisa's accrual accounting shows a higher net profit than Laura's cash accounting method. With the difference being Lisa's $10,750 to Laura's $8,050 profit.

b. Cash Accounting would show the most accurate amount of money on hand over the accrual accounting method. "Alternatively, a cash accounting system is a method that records revenue as being earned when it is actually received."(Dopson 49).

c. Accrual accounting shows the revenues generated regardless of when they were received, unlike cash accounting. "In an accrual accounting system, revenue is recorded when it is earned, regardless of when it is collected, and expenses are recorded when they are incurred, regardless of when they are paid."(Dopson 49)

d. Accrual accounting shows the actual expenses regardless of what has been paid, unlike how cash accounting only shows what has been paid not the full amount.

e. Cash Accounting shows the inflows and outflows of cash as a direct effect to the profit, where accrual accounting looks at the big picture regardless of when transactions are completed. "The major advantage to using a cash accounting system is its simplicity."(Dopson 49).

f. Accrual Accounting will show the most accurate reflection of their restaurant's true profitability. As it may not account for what has been directly paid or received like cash accounting, it gives the final numbers rather than the progress.



Work Cited: 
Dopson, Lea R. Managerial Accounting for the Hospitality Industry. Wiley, 09/2008. VitalSource Bookshelf Online.

Week 1 EOC: Chapter 1 Question 3



I think this is a highly blurred line, due ethics being determined from social norm. As is the norm in the hospitality industry, tips are widely accepted so there is an underlying norm of receiving something extra for their work. "You must also consider whether or not it is permissible within the guidelines established by the company for which you work."(Dopson 20). The immediate risk for Laurie would be her company, as it is their property so how they handle these matters will affect her. This could be simply handled within the company or they could pursue involvement of law enforcement.

"Besides, any gifts received by you will most likely be paid by your business through future price increases."(Dopson 21). There are many different parties that will be hurt from this action, just because Laurie wants to save some money on hot dogs. I think the simplest way to answer it, is by asking if I found out someone else got them would I be mad?

I would not take them for personal use, as there may be an ability to justify her action. That being said if I had the final say I would go with the suggested alternative "Return it to the purveyor with a nice note telling them how much you appreciate it but your company policy will not allow you to accept it."(Dopson 21). As it is one of the only options that will maintain the relationship with the vendor, while still giving the power to the company's side to demand on time completion of deliveries in the future. It is a polite way of saying a few hot dogs doesn't clear them for being late on delivery.


Work Cited: 
Dopson, Lea R. Managerial Accounting for the Hospitality Industry. Wiley, 09/2008. VitalSource Bookshelf Online.

Saturday, October 1, 2016

Week 1 EOC: My Voice

 
I am the devil’s advocate, as in when I am placed in a situation I will always try to understand the other side of things. I use this to maintain a wide view on topics and issues that face me both creatively and administratively. I grew up in Wisconsin but for the past five years I have moved across the country. Though I have made sacrifices to do so, my ability to assimilate into the areas to get a better understanding has been invaluable to me. My greatest strengths are in visual composition, both for video and print the former being my strongest. What I lack in technical skill for production I believe I more than make up for with my ability to navigate a project within its market. Though I can’t say I have had a perfect past or succeeded in every endeavor that I have taken on I know without a doubt that I can pick myself back up and keep striving for more.