Wk 10 EOC: My Plans

As my graduation is nearing, people have asked what my plans are for after college. The answer is simple, I want to work for myself and own my restaurant. The name of the restaurant would be Le Papillon Mexique and it would be a fusion of Latin and French food. It will be a fine dining establishment with a capacity of 100 guests. Attending the Art Institute has given me great insight on what to expect in owning a business. There is much more planning, saving, and producing than what most people expect. It’s not just about cooking, there has to be financial planning, the décor and how many employees there are going to be. Being in Las Vegas where people come from all over the world to have an unforgettable experience, why not give them something that no one has? "Many small business investors secure equity funds from relatives, friends, colleagues, or customers who hope to see their businesses succeed and get a return on their investment. Other sources of equity financing can include venture capitalists, individuals with substantial net worth, corporations, and financial institutions” (447). This is a great city to find investors to fund your small business. There are always people out there who are looking for ways to invest their money into something that will turn into a profit. So that is my plan, to graduate college with my Bachelor’s degree in Culinary Management and find investors who will view my plan as a success and start my little business in this big city.  

Wk 7 EOC: Trump and Small Business

This past year, the presidential campaign has been headlining in the news almost every day. Finally, election day came and Donald Trump is now the Presidential Elect. Many people now wonder what the economy will be like once he’s president, since he’s a business man himself. “Manta's survey, which polled a diverse group of 834 small-business owners nationwide between Sept. 26 and Sept. 28 revealed that Republican candidate and business mogul Donald Trump was the winner, with 58.7 percent. Democratic candidate Hillary Clinton garnered 41.3 percent of their vote” (Lori Ioannou). Yet, many surveys how that these small businesses choose him over Clinton. They say that he’s a businessman who will help the smaller business thrive so there can be an economy boost. Despite the positive feedback from some small business, there are others who think that its will destroy their future. “Trump cannot relate to the struggles of the average American business owner. Born into wealth, his father issued him with a $1 million loan to get his business off the ground. Despite his claims that his rise to one of the wealthiest Americans wasn’t easy, Trump does not know what it’s like to pinch pennies. Further, his companies claimed bankruptcy four times” (Rohit Arora). Their view on this is where I agree, although he may be a business man, he doesn’t know what it means to start from nothing or to struggle as you continue your business. “Many small business investors secure equity funds from relatives, friends, colleagues, or customers who hope to see their businesses succeed and get a return on their investment. Other sources of equity financing can include venture capitalists, individuals with substantial net worth, corporations, and financial institutions” (447). With his view on deporting all the immigrants, if that were to happen, the economy would crash. Business would be at a standstill for lack of employees. Yes, they may be here illegally but they are contributing to our economy. No one would want to do their dirty work so who will them? This is a conflicted argument, but unfortunately, small businesses will suffer to an extent. 

Sources Cited

Arora, Rohit. "Why Donald Trump Would Be the Worst President for Small Business." Forbes. Forbes, 29 Feb. 2016. Web. 12 Dec. 2016.

Ioannou, Lori. "Small Business Says Trump Is Their Pick for President." CNBC. CNBC, 5 Oct. 2016. Web. 12 Dec. 2016.

Wk 9 EOC: Acquire the Restaurant?

Assume that the restaurant’s sales volume last year was approximately $1,400,000, and thus its loss for the year was about $98,000.


   1. If Dan and Loralei decide to buy the restaurant, some fixed costs would be incurred. List at least five important fixed costs that would be directly affected by the purchase decisions Dan would make regarding the acquisition of the property.
-Some fixed costs that are important and would directly affect the purchase decision include: mortgage payments, insurance policies, salaries, and taxes for both property and business.  the cost involved is the same (fixed) each month. For that reason they are called fixed costs. "...a fixed cost is one that remains constant despite increases or decreases in sales volume (number of guests served or number of rooms sold" (316).

   2. If Dan and Loralei operate the restaurant, some variable costs would be incurred. List at least five important variable costs that would be directly affected by the operating decisions Loralei will make as she manages the restaurant.
-Variable costs that could affect the operating decisions include the costs of food, drinks, cleaning supplies, utilities, and labor costs. "A variable cost is one that increases as sales volume increases and decreases as sales volume decreases" (317).

   3. Consider the decisions Dan and Loralei will make if they choose to acquire the restaurant. While clearly both are important, whose decisions do you think are the most important to ensuring the future profitability of the Watershed? Why do you think so?
-Both decisions are very important for a business. I think that Loralei's decisions are the most important to ensure profitability because just increasing sales could also mean the increase in variable costs, which could then be more expensive in the long run. Decreasing fixed costs to a safe level where the restaurant can still run perfectly and increasing sales will give them a buffer in which they could fall back to for whatever reason. "Good managers seek to decrease their fixed costs to their lowest practical levels while still satisfying the needs of the business and its customers. Those same good managers, however, know that increases in variable costs are usually very good!) (318).

Wk 6 EOC: Weed in the Workplace

The legalization of marijuana has become a very hot topic over the past few years. With the election coming up, people are finally getting a chance to voice their opinion. If things go according to plan, it will pass and become legalized. Then employers will have to deal with the issue at hand: people working under the influence. "Nonetheless, as long as an employer has a clearly communicated and enforced policy prohibiting the use and possession of marijuana and other controlled substances while at work, that employer can likely legally terminate an employee for his or her use of recreational marijuana because use is still illegal under federal law. While the use of recreational marijuana and its impact on the workplace is still relatively new legal territory, those courts that have addressed such circumstances have thus far upheld employer termination decisions" (Atterberry). I for one, am for the legalization of marijuana. There are many benefits that help people with different health issues, such as anxiety, Alzheimer's, epileptic seizures, inflammatory bowel diseases, among many others. This is one effective way to decrease their symptoms or decrease the risk of it spreading. "There are at least two active chemicals in marijuana that researchers think have medicinal applications. Those are cannabidiol (CBD) — which seems to impact the brain without a high— and tetrahydrocannabinol (THC) — which has pain relieving (and other) properties." Going back to the Prohibition from 1920 to 1933, the creation, sale and distribution of alcohol was prohibited. This created many "gangsters" and underground distribution houses. That is exactly what's going on now with marijuana. People are finding ways to go around the law and partake in "recreational activities." There are many things that people do that can alter their perception and sense of common sense. This isn't the first thing that has come up. Besides all of the medical benefits, its not a hard drug like the others that are also illegal. As long as people do it responsibly, there shouldn't be an issue with it. 

Sources Cited:

 Atterberry, Rachel E.A. "Marijuana in the Workplace: A Hazy Issue for Employers." Society for Human Resource Management. N.p., 18 Sept. 2015. Web. 07 Nov. 2016. 

Wk 4 EOC: Chapter 5 Quiz, Question 2

Define these terms:

• Source or a Use Fund: "inflows and outflows of money affecting the cash position"

• Net Receivables: "the term net means that something has been subtracted out, are those monies owed to the business after subtracting any amounts that may not be collectible  doubtful accounts."

• Notes Payable: "Notes payable are short-term loans, (less than a year)."

• Retained Earnings: "accumulated amount of profits over the life of the business that have not been distributed as dividends."

Wk 4 EOC: Chapter 4 Quiz, Question 3

a. Compare Rachel’s Cash % with the chain’s %.  Is it higher or lower?  What might this mean?

b. Compare Rachel’s Inventories % with the chain’s %.  Is it higher or lower?  What might this mean?

c. Compare Rachel’s Accounts Payable % with the chain’s %.  Is it higher or lower?  What might this mean?

d. Compare Rachel’s Notes Payable % with the chain’s %.  Is it higher or lower?  What might this mean?

Answers:

a. Rachel's cash % is lower at 4.5% than the chain's at 6.70%. This could mean that her assets aren't as high which means that she's not making money.

"The term cash, refers to the cash held in cash banks, money held in checking or savings accounts, electronic fund transfers from payment card companies" (123).

b. Rachel's inventory % is at 2.7% and the chain's is at 1.30%, so she is not selling everything that she has to lower it to 1.30%.

"Inventories will include the value of the food, beverages, and supplies used by a restaurant, as well as sheets, towels, and the in-room replacement items (hangers, blow dryers, coffee makers, and the like), used by a hotel. In most hospitality industry situations, the value of an inventory item will equal the amount the business paid for it" (124).

c. Rachel's is at 9.0% and the chain's is at 10.50% which means that she doesn't have any debt with any creditors. "It is important to remember that, even if the income statement indicates your business is very profitable, excessively large amounts of accounts receivable (which are not identified on your income statement) could be a tell-tale sign that:

• Too much credit has been extended.
• Credit collection efforts may need to be reviewed and improved if necessary. 
• Cash reserves could become insufficient to meet the short-term needs of your business."

d. Her's is at 2.0% and the chain's is at 1.10%, which means that she owes more money than the rest of the chain.

Wk 3 EOC: Greatest Restaurant Experience

My greatest restaurant was when I had dined at Giada's at the Cromwell on the Strip, in Las Vegas. Chef Giada is a famous, female chef, who specializes in Italian food. My classmate Isabel had just graduated from The Art Institute of Las Vegas so we decided to celebrate. We made the reservation for 8:30 p.m. on a Sunday night, we arrived at 8:15. At first it looked like no one was waiting in the designated area so we got a little excited. Once we had walked up to the front desk, the Hostess told us that the reservations are running behind schedule. So we were then told to have a seat and wait for our party to be called. So we had a seat and moments later another party walked in and were told the same thing. Finally, around 8:50 our party was called and the hostess led us to our table. The restaurant was spectacular and it was quite busy as it should be on a Sunday night. Not a minute after we had taken our seats, one of the waiters came up to us and welcomed us into the restaurant. He then offered us a drink to start off with and handed us the menus. Everything was done in a proper and timely manner which I am a huge fan of. We got our appetizers promptly and then our entrees not long afterwards. I had Meatballs and Mushrooms for the appetizer and for my entree I had ordered the tri-colored Fettuccine. It was absolutely delicious. The best part of the night was that we were able to meet the Sous Chef and a tour of the kitchen. Sous Chef Dante is actually a graduate from The AI as well. “Customers who receive better service are more satisfied. They feel more appreciated, and like the higher-quality service they receive. They also feel they are getting more for their money” (303). This is particularly true because this dining experience was amazing, but pricey. I definitely got my money’s worth and had a great experience, I would absolutely dine there again.

Wk 2 EOC: Chapter 2, Question 4

a. Which accounting method, Lisa's accrual accounting or Laura's cash accounting, shows a higher net profit?

b. Which accounting method shows the most accurate amount of money on hand to pay bills?

c. Which accounting method most accurately shows the revenues generated regardless of when they were received?

d. Which accounting method most accurately shows the expenses incurred regardless of when they were paid?

e. Which accounting method most accurately shows actual cash inflows and outflows?

f. Which accounting method shows the most accurate reflection of their restaurant’s true profitability?

Answers:

a. Lisa's accrual accounting shows a higher net profit at 10,750.

b. The most accurate would be Cash Accounting because it shows the real time profit at the moment in time of the transaction.

c. The most accurate would be the Accrual Accounting as it shows the entire profit.

d. Also the most accurate would be Accrual because it shows the actual profit regardless of the time it was paid.

e. The most accurate would be Cash Accounting because it shows all of the money that was added and taken from the account.

f. Accrual would be the most accurate because it shows the profit in its entirety. 

Wk 1 EOC: Quiz 1, Question 3

A.     Is it legal?

Yes, its legal. It doesn't violate any written laws although there are written codes against it in the company.  “Everyone would agree that hospitality managers should follow any laws that regulate the reporting of financial information. Laws do not exist, however, to cover every situation that future managerial accountants will encounter” (21). “Return it to the purveyor with a nice note telling them how much you appreciate it but your company policy will not allow you to accept it” (20).

B. Does it hurt anyone?    

    No, it doesn’t hurt anyone in any physical way. Although, the "samplings" were

given to her for the restaurant. Not as a gift for her personal entertainment. 

C. Am I being honest?

   At this moment, she isn't honest because this isn't being professional by using products from the business as her own property. “Turn the gift over to the general manager to be placed into the normal liquor inventory (assuming that the law will allow it to be used as such)” (20).

D. Would I care if it happened to me?

  Yes, since she is the only one who is purchasing these products, she's not the one who would be affected financially through the business. If she was the manager of the restaurant, then she would care as it would be directly affecting her.

E. Would I publicize my action?

No. She hasn't told her manager any of this so she wouldn't want any of this to be publicized. If this should go to court, it would be quiet embarrassing to know that she took product from the restaurant for her personal use.

F. What should be done with the two cases of hot dogs?

  The two cases of hot dogs should be used to "sample" them at the restaurant instead of her taking them home for her neighbor’s BBQ. 

Wk 1 EOC: My Voice

Food is my passion and I am a Culinary Professional. For as long as I can remember, I have always been in the kitchen helping my mother and grandmother cook and prepare meals. Whenever I’m in the kitchen, it gives me a sense of belonging and a peace of mind. I’ve always liked seeing the faces of family members or those of friend’s whenever I present to them the dish I had prepared. Being able to create something delicious from a handful of ingredients is what drives my initiative. One day, I strive to run my own restaurant. Exact dice cuts, the perfect consistency of a sauce, the colorful array of vegetables, or the crispness of the roasted meat. This is everything I look for when I prepare a dish. There should be a balance of sweet, salty, smooth, crunchy, and spicy or sour depending on the plate you’d like.  Many people think that cooking is an easy task, let me correct them. Cooking is more than just throwing ingredients together and calling it quits. It’s about figuring out which flavors play out well, which textures compliment each other, and creating a visually appealing arrangement. Cooking for me is a way of life.