Papa student workbook answers session 2

Meaning to go through the assignment and CHECK and FIX, ANY mistakes, including but not limited to adding references, correcting calculations, rewording text, fixing workbook as well and adding things that needs to be added. EVERYTHING needed will be attached,

READ COURSE DESCRIPTION FOR PAPA GEOS RESTAURANT AND FOLLOW ALL DIRECTIONS FOR IT. PLEASE MAKE SURE EVERYTHING IS CONSISTENT AND MAKES SENSEPapa Geo’s Restaurant Budget Proposal for [2015-2020] BUSN-278 Papa Geo’s Restaurant Table of Contents Section Title 1.0 Executive Summary 2.0 Sales Forecast 3.0 Capital Expenditure Budget 4.0 Investment Analysis 5.0 Subsection Title 2.1 Sales Forecast 2.2 Methods and Assumptions 4.1 Cash Flows 4.2 NPV Analysis 4.3 Rate of Return Calculations 4.4 Payback Period Calculations 5.1 Pro Forma Income Statement 5.2 Pro Forma Balance Sheet 5.3 Pro Forma Cash Budget 7.1 Appendix 1: [description] 7.2 Appendix 2: [description] Pro Forma Financial Statements 6.0 Works Cited 7.0 Appendices Page Number Papa Geo’s Restaurant 1.0 Executive Summary Papa Geo’s’ will be a single located Italian restaurant. It will be a locally owned Italian outlet that will be positioned as a local business with a strong focus on creative image and artistic presentation so as to attract more and more consumers across the city. The restaurant will have a strong focus on value pricing and excellent quality food. With an emphasis on this, the company will be able to attract more and more consumers across the city. The restaurant will be located at the main at a crowded location at the main market of the concerned city. The restaurant will not compete with the well-established international brands, but will have a strong focus on serving high quality food so as to attract additional consumers. The focus will be to attract middle to lower-middle class families in the Orlando, Florida area. With this plan, the revenue is expected to grow at 10% per annum. The restaurant will focus on serving Italian food to its target consumers with a concept of buffet style. The tentative menu will consist of various salads, pizzas, and an assortment of pastas with three to four kinds of different sauces, soup, desserts and self-servicing soda bar. One of the other attractions for the consumers will be a 500 sq. ft. gaming area where children can play different games of their interest. This will help in attracting additional consumers across the city. With a strong focus on quality and delivering the food at low pricing will attract other consumers. The company is forecasting the growth in its consumers by a minimum of 10% per annum, whereas the inflation will be considered as 5%. Papa Geo’s Restaurant The company will be charging $7 per person for buffet. The company will have an average net cash flow of $39,581 per annum. The cost of capital will be estimated to be 12% and the NPV of the company will be $31267, and IRR of 13%. The company will generate profit of about $41738 in first year of its operations. 2.0 Sales Forecast The restaurant will strongly center on delivering quality food and services to its customers to gain more regulars. Being a part of a highly competitive service industry the company will give a strong emphasis on the training of the employees and learning to deliver the best quality and service. Having a major focus on this, the restaurant will be able to attract about 1,30,000 customers in a year, which will be expected to grow at the rate of 5%. Year Sales forecast for buffet style Revenue per unit (Buffet) Revenue generated Total revenue generated 2.2 Methods and Assumptions 1 2 3 4 5 130000 136500 143325 150491.25 158015.813 $7.00 $7.35 $7.72 $8.10 $8.51 $910,000 $1,003,275 $1,106,111 $1,219,487 $1,344,484 $910,000 $1,003,275 $1,106,111 $1,219,487 $1,344,484 Papa Geo’s Restaurant The sales will be forecasted on the basis of the market analysis conducted. There are various tools and techniques which are used by an organization to expand the marketing plan of the business. Businesses utilize different tools and techniques which assist in market segmentation and developing the marketing plan of the organization. With the changing needs, demand of the customers and the strong focus on high quality tasting food and really low prices this will attract more business from customers across the city.