C
H
A
P
T
E
R
2 FINANCIAL REPORTING
F
E
A
T
U
R
E
S
T
O
R
Y
TILLMAN J. FERTITTA
Tillman J. Fertitta’s entrepreneurial spirit and financial astuteness have helped him create a highly successful $600 million restaurant company, Landry’s Restaurants, Inc. Business Week recently listed Landry’s Restaurants, Inc., as twenty-sixth on their list of the ‘‘Top 100 Growth Companies.’’ Forbes listed Landry’s fifth on its roster of ‘‘The 200 Best Small Companies in America.’’ Landry’s also received the Nations Restaurant News award as one of the nine ‘‘Hottest Concepts of the 1990s.’’ Born into a family of entrepreneurs, Fertitta is no stranger to starting new businesses. During his high
…show more content…
F I N A N C I A L S TAT E M E N T S
a. Income statement b. Balance sheet c. Statement of cash flow
3.
MANAGEMENT REPORTS
a. Daily revenue report b. Daily payroll cost report c. Rooms revenue forecast d. Food and beverage menu abstract e. Accounts receivable aging schedule
4.
ACCOUNTING SYSTEM—CP3 SYSTEM
FINANCIAL REPORTING he goals of chapter 2 are to introduce you to the financial and management reports you will encounter during your hospitality career and to teach you how to read and interpret them. The more you advance within your company, the more you will rely on these reports to succeed. The more familiar you are with the financial statements, management reports, and control systems presented in this chapter, the better your chances will be for promotion and the more effective you will be as a manager. We begin the chapter with a brief review of the accounting principles and system of accounts that provide the foundation for the preparation of financial statements. We discuss new accounting rules affecting the hospitality industry today, and then focus the balance of the chapter on the management reports and control systems that will help you make informed financial business decisions and become a successful hospitality manager.
T
Accounting as the Language of Business
Many people in the hospitality industry find accounting and finance, which are considerably different from the operational
Click here to unlock this and over one million essays
Get AccessIn relation to hospitality and catering, the non-commercial or “public” sector exists in the form of hospitals and institutes of education. Organisations in the commercial sector are privately owned and exist solely to find a niche to exploit to make money. While money-making is still a factor in the private sector, it is not the main goal. With the primary goal, demographic and expectations of the target audience, along with location and budget, all taken into account, different areas of the hospitality and catering industry begin to differ widely.
Gordon Ramsay Holdings also has several business principal such as “Standards are the staple”, “Discipline yourself so the customers do not have to”, “Do not let business come to statistics”. At first, I was amazed that his restaurants were so successful not to mention the large profits he made. Normally, Chef is not good at running a business. Astonishing new came that for the first time, he has admitted that his hospitality empire almost came close to collapse recently. After an ambitious overseas expansion plan, his business went into total chaos, auditors from KPMG found that Ramsay company was losing millions of money. Opening ten restaurants in ten months, Ramsay admitted that his ego brings him down and it is way too fast to expand a company like
The analysis of a company's financial statements helps in the determination of both the weaknesses and strengths of the concerned entity. Further, such an analysis helps in the determination of the future viability of firms. There are a wide range of techniques utilized in the analysis of financial statements. In that regard, it is important to note that the relevance of a horizontal, vertical as well as ratio analysis of a company's financial statements cannot be overstated. This is more so the case when it comes to the interpretation of the various dollar amounts presented in both the balance sheet and the income statement. In this text, I carry out a horizontal, vertical as well as ratio analysis of both The Coca-Cola Company and PepsiCo, Inc. The analysis' results will be critical in the evaluation of each company's performance. Findings will be used as a basis for recommendations on how each company can improve its financial status.
The process outlined by Mr. James reflects a growing practice today. I was not surprised by the charge given us. Companies in the hotel industry are looking for and expecting a documented favorable financial return on their expenditures. Admittedly, sales and marketing has lagged behind other functions, such as lodging operations, in showing measurable profit results from its efforts. The new planning and budgeting process will be a challenge because it is “bottom-up” and profit driven rather than “top-down” and revenue driven. But it is a worthwhile undertaking to achieve profitability within two years. I hope the planning and budgeting process doesn’t turn into a cost-cutting exercise.
Accounting is complicated, but future accounting software, especially that tailored to the sole needs of the hospitality activity, helps to permit lodge owners to make smart decisions. Services and harvest that are no longer worn can be instantly cut off to preclude money, while those who show want can be augmented in magnitude or bespoke to diminish the important tradition. Most hotels are recurring with booking quarters and reservations over
Unit Code ACC101 ADV101 COM104 ECO101 HOS101 IND101 MGT101 MGT102 MGT103 MKT101 MKT102 MKT103 PRN101 TOU101 ACC201 Fundamentals Of Management Accounting and Business Finance Understanding Advertising Sound, Vision and News Economics In A Business Environment Introduction To Accommodation Management Industry Practices Management Principles and Practices Introduction To Hospitality, Tourism and Events Service Industry Theory Understanding Marketing Introduction To Consumer Behaviour Marketing Communications Understanding Public Relations Tourism Theory and Practice Introduction To Applied Finance Textbook Accounting Business Reporting for Decision Making Advertising: Principles
The Sanctuary Hotel, which is located in Adelaide CBD, illustrated in the conducted Profit and Loss Statement its performance based on the day to day operations. The General Manager was indicated to organize a vertical analysis for a Profit and Loss Statement. A vertical analysis is a financial method for a system in which is divided into three categories(assets, liabilities and owner’s equity) in order to estimate the financial status of the business(Investopedia, 2015). While conducting a vertical analysis of the Profit and Loss Statement, the Sanctuary Hotel’s General Manager identified several valuable under performances. The three areas which were affected the most are linens, repairs and maintenance, and uniforms. In this document several suggestions will be addressed for each of the under performance acknowledge in the Sanctuary Profit and Loss Statement.
b. Prepare an income statement, a statement of retained earnings, and a balance sheet, (See Exhibit 1.2, 1.3 and 1.4)
In our country textile companies are doing very well business. So many competitors are in this sector. Lots of new companies entered this market. From all of them we choose two cement company for our report. We collect their financial statement & analyze them within three methods & we identify their comparative advantage.
B. Balance Sheet - summary of accounting values of a firm’s assets and claims against those assets
PepsiCo and Coca-Cola are fierce competitors and according to their financial statements they are both healthy companies. Therefore I would invest in Coca-Cola if I had to make the decision because it has higher income, a stronger long-term debt to networking capital ratio, steadily rising net income per common share, and a climbing and high solvency ratio. PepsiCo still shows healthy growth and outperforms Coca-Cola in many areas. I will conduct a financial analysis of Coca-Cola and PepsiCo to identify their strengths and weaknesses, ultimately deciding which one is worth the investment.
PepsiCo and Coca Cola are two major companies that manufacture beverages. They compete to be the number on manufacturer and distributor of beverages in the world. These two companies are very identifiable in this market and you know them as PepsiCo and Coca Cola. These two companies have undoubtedly dominated the markets worldwide that they both receive universal recognition for their different products. Although, there are many other manufacturers and distributors of beverages these two are the major competitors. Not only do they produce soda drinks, they also
There are many different types of soft drink manufactures in the United States and throughout the world. The two most popular manufactures are Coca-Cola and PepsiCo. They are the two companies that are well known all over the world. These two companies have cornered the soft drink market with their products for many years.
The three largest are: (1) Frito-Lay North America, (2) Frito-Lay International and (3) Gatorade/Tropicana. Pepsi’s major liabilities include:
MBA (Hospitality Management) OPS 103 Operations Functional Management in Hospitality Organisations Module Leader: Seth Lewis Date: 24/4/2010