SBE 560 Week 5 DQ 1 (Financial Analysis)

SBE 560 Week 5 DQ 1 (Financial Analysis)

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Attachments: SBE 560 Week 5 DQ 1 (Financial Analysis).docx [ Preview Here ]

(TCO D) Ilene Polansky owns two trendy restaurants in Montreal, Canada. Since starting her first restaurant, Polansky has been juggling multiple roles, shortchanging a focus on profitability. Although her restaurants' net profit margin of 10%-15% is within the industry average and loyal patrons pack both locations virtually every night, Polansky continues to experience periodic financial problems. Polansky counts on what she learned in a 10-week bookkeeping course to manage her company's finances. Her secretary writes all of the checks, but she does not track the restaurants' expenses over time. Once a month, the secretary goes to Polansky's father's accounting firm to use his computer to input invoices. Polansky is planning to open a third location within a year, but she knows that she has to get her financial plate in order first.

 

Critique the existing financial control system Polansky has in place for her restaurants. What recommendations can you make for improving it? Which financial reports would you advise Polansky to prepare? How should she use them to manage her restaurants? 

 

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