Manage Financial Operation of Sushi Bar
Introduction
This assignment is related to the manage the financial operations, which helps develop the financial management and monitor the financial procedures, financial performance of the business.
Sushi bar was established there years ago , it has the freshest and finest sushi , and the owners want to sell the business, and it’s aiming at top-end corporate clientele. I will look at the financial information and do the ratio analysis, then I will decide whether to buy the business, if it would be a good investment.
1. You are investigating whether to buy Sushi Bar. Discuss what sort of financial information you would be interested in and why it’s relevant.
There are many types of financial information would be concerned whether to buy the Sushi Bar:
Ratio analysis: It’s a tool used to evaluate the financial performance and position of a business, communicate financial performance that may not be apparent in P&L statement and balance sheet. It analyses Overall performance, Profitability, Turnover, Liquidity, Solvency and Leverage.
It could provide me all the important warning indications of problems of Sushi Bar,
Income statement: Income statement provides the profit and loss information of the business, and it’s also called P&L statement.
The income statement includes the information about the sales, Cost of goods, Gross profit, Labour cost, Overheads, and Net profit.
It could show me whether the Sushi Bar made or lost money during the 3 years being reported.
Balance sheet: It’s a summary of an organization’s balances, it prefers to financial position or condition, reports on a company’s assets, liabilities and owner’s equity. It gives a point of business.
It could set out the assets and liabilities to show me the net worth of the Sushi Bar.
Cash flow statement: It’s a financial statement that shows how change in balance sheet and income accounts affect cash. It’s useful in determining the short-term viability of a company,
This assignment is related to the manage the financial operations, which helps develop the financial management and monitor the financial procedures, financial performance of the business.
Sushi bar was established there years ago , it has the freshest and finest sushi , and the owners want to sell the business, and it’s aiming at top-end corporate clientele. I will look at the financial information and do the ratio analysis, then I will decide whether to buy the business, if it would be a good investment.
1. You are investigating whether to buy Sushi Bar. Discuss what sort of financial information you would be interested in and why it’s relevant.
There are many types of financial information would be concerned whether to buy the Sushi Bar:
Ratio analysis: It’s a tool used to evaluate the financial performance and position of a business, communicate financial performance that may not be apparent in P&L statement and balance sheet. It analyses Overall performance, Profitability, Turnover, Liquidity, Solvency and Leverage.
It could provide me all the important warning indications of problems of Sushi Bar,
Income statement: Income statement provides the profit and loss information of the business, and it’s also called P&L statement.
The income statement includes the information about the sales, Cost of goods, Gross profit, Labour cost, Overheads, and Net profit.
It could show me whether the Sushi Bar made or lost money during the 3 years being reported.
Balance sheet: It’s a summary of an organization’s balances, it prefers to financial position or condition, reports on a company’s assets, liabilities and owner’s equity. It gives a point of business.
It could set out the assets and liabilities to show me the net worth of the Sushi Bar.
Cash flow statement: It’s a financial statement that shows how change in balance sheet and income accounts affect cash. It’s useful in determining the short-term viability of a company,