Papa Geo Budgeting Project Essay

1983 Words Dec 30th, 2011 8 Pages
Brain Enterprises
Budget Proposal
For
Papa Geo’s Restaurant

BUSN-278
SUMB11 Sec B
Professor Marie Main
DeVry University

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Table of Contents

Section | Title | Subsection | Title | Page Number | 1.0 | Executive summary | | | 3 | 2.0 | Sales Forecast | | | 3 | | | 2.1 | Sales Forecast | 3 | | | 2.2 | Methods and Assumptions | 4 | 3.0 | Capital Expenditure Budget | | | 4 | 4.0 | Investment Analysis | | | 6 | | | 4.1 | Cash flows | 7 | | | 4.2 | NPV Analysis | 8 | | | 4.3 | Rate of Return Calculations | 8 | | | 4.4 | Payback Period Calculations | 9 | 5.0 | Pro Forma Financial Statements | | | 9 | | | 5.1 | Pro Forma Income Statement
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These figures are not definite and will likely change over time as figures are being actualized every year. These assumptions were based on an article written by the National Restaurant Association where they stated that as long as the economy keeps doing well the estimated sales in restaurants will exceed $604 Billion in 2011 alone (National Restaurant Association, 2011). From the projected forecast of sales for 2011 we are assuming that the prosperity in growth will continue each year. However with any economy nothing is for sure and sales should be monitored and increasing prices to keep up with costs will most likely need to be reviewed bi-annually. * * 3.0 Capital Expenditure Budget

* * The expected prices from all Capital Expenditures listed were found online at a number of websites to look for the most cost efficient prices: * http://www.acemart.com/ * http://www.webstaurantstore.com/1045/mops-and-mopping-accessories.html * http://www.centralrestaurant.com/ * http://www.katom.com/ * http://www.instawares.com/ * http://www.bmigaming.com/ * http://www.bradydist.com/brady_distributing_arcade_games.php * * * The resulted findings for all items that are necessary to start up the restaurant total to