Part 1

1 Identify (and show the calculation) of the Y-1 and Y-2Operating

Expense Ratios for both Melbourne and Cairns in the following table:

Operating Expense Ratio Operating Expense Ratio

(Year Y-1) (Year Y-2)

Melbourne 0.88 0.87

Cairns 119.7% 108.8%

i. What is the trend of the ratio for restaurant? Has it

The ration is improved for both restaurants in year Y-2 but the improvement is very minor.

improved?

2. Interpret the ratio for each restaurant from a profit/loss perspective

Melbourne restaurant is making profit as the ratio in below 100% , on the other hand cairn restaurant made the loss
because the ration is more than 100%.
 D. Research how sales and expense growth rates impact profits of a
business. Then, calculate the growth rates of Total Sales and Total
Operating Expenses for both restaurants, and comment on how they
have affected the Net Profit/Loss Before Tax in Year Y-2.Organise your
analysis in the following table:

Growth Rate Comments

(Year Y-2) over (Year Y-1)
5.88 sales growth is high than
Total Sales operating business.

Melbourne
Total 4.90
Operating
Expenses
37 Sales growth is high than
Total Sales operating business

Cairns
Total 23.47
Operating
Expenses

i. What is the Net Cash from Operations position for

Melbourne in Year Y-2? What are its implications? Has
it improved from Year Y-1?
The net cash from operation is negative which means there is net outflow of cash. The condition is improved in
contrast to year y-1.

2. How have the change in Accounts Receivable and Accounts Payable

during Year Y-2, affected the operating cash position for Melbourne in
Year Y-1?

The decrease in Account payable will decrease the cash in hand from previous year as the restaurant made
payment to the supplier. Similarly, decrease in account receivable will increase the cash in hand.
 3 Identify two actions Pesto’s can take to improve its cash position.

Delay all cash payments

Collect all money at the date

Part 2
a. What were the financial goals planned for both restaurants for the
Current Year (Year Y3)?

Increase net earnings from food sales by at least 10% in all restaurants
Increase net earnings from beverage sales by at least 15% in all restaurants
Achieve 10% sales through catering at all restaurant
Holding spending, as a percentage of sales, at a steady rate, at all restaurant

b. Based on market research, (i) what are the critical timelines for sales
forecasts for each restaurant in the Current Year? (ii) Which four
initiatives or objectives of Liberty Restaurant Group will generate or
require resources in the next financial cycle?

For Melbourne restaurant, there will be decrease in sales in Quarter 1 and Quarter 4。
Whereas for Cairns Restaurant there will be no decrease but will be huge increase of sales in Quarter 4.

Holding spending as percentage of sales will generate more cash in hand for the business.
Increase net earning from sales will requires to reduce expense which will require more saving strategies.
Increase net earning from beverage may required more efficient and cheaper equipment.
Achieving sale through catering may requirer casual and cheaper labor to save more each time
 Part 3

Conduct due diligence and review the Accounts Receivable Ageing Summary
for the Melbourne Restaurant. Answer the following questions:

a. What is the overall balance of Accounts Receivable as at 30th June (Y-2)?

$40,100

b. How much of this value should the restaurant be recovering immediately

to bring Accounts Receivable within compliance of the Credit Policy (see
the Business Plan)?

$30,040

C .Answer the following questions based on your understanding of the

extract of Credit Policy given in Appendix A:
i. Which overdue invoices qualify for an email/letter from the
accounts manager, reminding the client to pay?
Identify clients and invoice details in the table below, and
calculate total amount owing.

Client Date of Invoice Amount

pacific events 09/04/2019 $3.200

Raymonds 15/04/2019 $3.980

Seminars 23/04/2019 $810

 Conference room 14/05/2019 $990

$8.980
Total

2. Which overdue invoices qualify for a letter of demand from the

accounts manager, cautioning the client that recovery action will
be initiated if outstanding invoices are not paid immediately?

Identify clients and invoice details in the table below, and

calculate total amount owing.

Client Date of Invoice Amount

Raymonds 12/03/2019 $4.200
Seminars 19/03/2019 $690
Conference room 17/04/2019 $900
Total $5.790

3. Which overdue invoices qualify for hand over to and

external debt recovery agency?

Identify clients and invoice details in the table below, and

calculate total amount owing.

Client Date of Invoice Amount

Raymonds vineyard 05/02.2019 $4,000

Conference room 05/02/2019 $1,000
Pacific Events 21/01/2019 $3,000
Ab Seminars 11/01/2019 $800
Raymonds Vineyards 16/02/2019 $3,500
Viet Conference room 14/01/2019 $970
Ab Seminars 14/03/2019 $800
Viet Conference room 24/01/2019 $1,200
 Total $15,270
Part 4

a. Identify at least four current statutory tax compliance requirements of

Liberty Restaurant Group.

1 Goods and service tax-Collect Gst on all sales by adding 10% to the transaction price. Remit this money
quarterly to the australian tax office vis the business activity statement.

2 Income tax to be paid annually- Tax from to be completed and lodged by 31 october each year for companies
tax rate on assessable income is 30%.

3 Payg withholding payable- Is the money owing to the ATO from taxes withheld from employee salary and wages.

4 Fringe benefits tax instalment paid as part of quarterly activity statement but lodged as returan on 30 march each
year.

b. Identify at least six of the current compliance requirements and

liabilities for Liberty Restaurant Group under the Corporations Act 2001.

1-An annual returan with information about thr company and its activities must be submitted to the australian
securities and investment commission.

2-Keep sufficient financial records to explain reports and records must be kept for seven years.

3- Directors are to act within the prescribed limits.

4- Use company namr and Acn on all publice documents, business premises, cheques and Asc lodged documents.

5= Large compaines must have theirfinancial statements.

6- Public companies must have their financial statements audited.

 Part 5
Task
Read the scenario above and:

a. Identify four performance issues of the Liberty IT system.

1-System is very complicated and take time to learn

2- Doesn't provide sufficient analysis for future forecast

3-Hard to make spreadsheet of for better understanding financial position

4-Doesn't create chart which make it difficult to compare data with old reports.

b. Research commercially available restaurant management software and

select two commercially available software titles (software) for
comparison against the capabilities of the existing Liberty IT system, and
against the prioritised requirements of the organisation.

1-KOUNTA
Designed specifically with hospitality in mind kounta POS markes no compromises for straight. Its flexible to all
different types and size of business. Behind the scenes is a security hardened database of all your most valuable
data.You get the same kind of big business reporting happens. And its run on anythings, Ipad, android, Pc.

2- Jolt- Jolt is tablet based software used to manage daily operations for brands like Mcdonald's, buffalo wide
wings. Owners and manager get a real time look at daily operation from their phone, and in store tables keep staff
accountable and on task.
 c. Select the most suitable restaurant management software for Liberty
Restaurant Group and provide a reason for your choice.

MENUMIZ will be best choice of IT system for Liberty Group. This IT software can link all the restaurant system in
one software. This system also provide quick and reports and chart for tracing financial position. This system can
also be view by mangers in the phone app so that they can track all the performance anytime and anywhere.