Financial Analysis of La Paloma

I. Executive Summary This financial analysis is non a classic or detailed study, of all be and does not pin up which domains of the restaurant are stronger, or weaker, than another(prenominal) areas. This analysis is ground upon the balance sheet and income statements provided by La Paloma for the periods of 2007 through, and including, 2011. Restaurants are a high volume subscriber line by nature. According to the matter Restaurant Association, 93% of eating-and- alcohol addiction target businesses have fewer than 50 employees. More than septet (7) out of ten (10) eating-and drinking place businesses are single-unit operations. And, just unit gross sales in 2009 were $837,000 at beneficial service restaurants. La Paloma currently has 46 employees, it a single-unit business and sales in 2009 were $1,587,600. By this standard al one and only(a), La Paloma looks to cope with right into the majority of all eating and drinking establishments. La Palom a was formed as an S-Corporation; therefore, the tax liabilities are not included, nor were the mend stockholders personal tax information taken into comity when completing this financial analysis. Revenue is solid and continues to grow. From 2010 to 2011, sales and gain gain ground have increased over 80%, composition represent of goods sold increased 87%.

A jazz financial analysis of La Paloma reveals a different generate than one of growth and strength, especially in the area of stock-taking costs, inventory overthrow, and gathering periods. One of the key areas that cause bread to grow at a slo wer rate than revenue is the operating expe! nses, specifically wages. Before La Paloma entertains the idea of expansion into another area of the city, it is highly recommended that the owners lower inventory costs; increase the turnover of existing inventory; drop the collection period of character sales, or eliminate credit sales altogether; and decrease the cost associated with payroll. Considering La Paloma is an S-Corporation and not a public restaurant, industry...If you unavoidableness to get a full essay, set out it on our website: OrderCustomPaper.com

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