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.