***DUE TODAY 11/03***I need to create an income statement and balance sheet for a clothing store boutique and have no clue what to include in each section. Instructions are attached.
Assignment 2: Create a Financial Template
Overview
The goal of this assignment is to create a financial statement template that will support future classes in determining your income streams and cost centers. For this assignment, you will identify these areas.
Assignment Description
The goal of this assignment is to create a template that will assist you in thinking about your future business concept for your degree and certificate program. To start:
In a minimum 350-word summary in a Word document following MLA format, describe the business concept you would like to write your Portfolio business plan on or apply to your future course projects. You should include a description of the concept, the city in which the business will be located, and type of food/cuisine and menu items.
Open up the CULHRM Financial Template. Then complete the following tasks:
Open up the Income Statement tab. Then go through each of the expense lines and delete the categories that you will not use based upon your concept. For example, a fast food restaurant might not need linen, so that row can be deleted. If you are not serving alcohol, then you can delete those lines. If you have an account that is not listed, then please add it to the sheet along with a brief description.
Complete the revenue portion of the income statement. Remove the categories that do not match your concept.
Complete the top portion with average check, number of seats, turnover (how many people sit in the seats), and the number of days open per year.
Open up the Balance Sheet tab. Then review the different categories of accounts on this page. Remove the accounts that you will not have in your establishment. Add any missing accounts that you may need.
At this time, do not worry about imputing any dollar amounts into the template other than those indicated in step c. You will be entering these amounts in later courses. You will use this template in this class and in other classes for your degree, so make sure you save this in a safe spot. Please remember to provide sources for any information used in your submissions.
| Grading Criteria | Maximum Points |
| Submitted a short overview of the concept establishment. | |
| Completed the Operating portion of the Income Statement template indicating the average check, number of seats, turnover, and days open. | |
| Completed the Revenue portion of the Income Statement Template including the type of sales. | |
| Completed the Expense portion of the Income Statement Template. Expenses not used are deleted from the template. | |
| Completed the Asset Section of the Balance Sheet by removing unneeded accounts and adding additional items as needed. | |
| Completed the Liabilities and Owner’s Equity section of the Balance Sheet by removing unneeded accounts and adding additional items as needed. | |
| Cited references in the correct MLA format. | |
| Total: | 24 |
***This template was provided by instructor but it’s for a restaurant. I need one for a clothing boutique***
| Name of the Establishment | |||||||||||||
| Income Statement Template | |||||||||||||
| Average Check - Daily | |||||||||||||
| Number of Seats | |||||||||||||
| Average daily turns of seats | |||||||||||||
| Number of days open per year | |||||||||||||
| Description | |||||||||||||
| Revenue | |||||||||||||
| Food | Revenue from Food sold | ||||||||||||
| Beverages | Revenue from alcoholic beverages sold - nonalcoholic beverages are included in food | ||||||||||||
| Catering | Revenue from serving food and beverage at parties located off premise | ||||||||||||
| Banquet | Revenue from serving food and beverage in a banquet or party room on the premise | ||||||||||||
| Merchandise | Revenue from sale of durable goods such as T-Shirts, mugs, key chains, bottled sauces, etc | ||||||||||||
| Total Revenues | |||||||||||||
| Description of this expense | |||||||||||||
| Cost of Goods Sold | |||||||||||||
| Food | The cost of purchasing food served in the restaurant | ||||||||||||
| Beverage | The cost of purchasing alcohol served in the restaurant | ||||||||||||
| Total Cost of Goods | |||||||||||||
| Labor Costs | |||||||||||||
| Wages - Hourly Employees | The payroll for employees who are paid by the hour. Taxes and benefits are included in the benefits line | ||||||||||||
| Salaries | The payroll for employees who are on salary. Taxes and benefits are include in the benefits line | ||||||||||||
| Benefits and Taxes | The costs of mandatory payroll taxes for the employees | ||||||||||||
| Total Labor Costs | |||||||||||||
| Other Expenses | |||||||||||||
| Accounting | The cost of outside accountant or bookkeeping services | ||||||||||||
| Advertising - Marketing - Promotional | The costs of promoting the restaurant and advertising the establishment | ||||||||||||
| Chemicals | The costs of chemicals such as dishwashing soap and cleaning chemicals used in the restaurant | ||||||||||||
| Depreciation and Amortization | The cost of equipment spread over its useful life. For example, a stove may cost $10,000 and be used for 10 years. Depreciation allows the owner to spread this cost over the income statements. Note that this is an internal cost—it is not "paid" to anyone | ||||||||||||
| Electrical | The cost of electricity for the restaurant | ||||||||||||
| Fees | The costs associated with any fees not included in other category such as an assessment or usage fee by a government agency | ||||||||||||
| Gas | The cost of gas or propane for the restaurant | ||||||||||||
| Insurance - workman's comp | The cost of all other insurance except those associated with payroll | ||||||||||||
| Insurance - Liability | Cost of insurance for liability issues | ||||||||||||
| Insurance - property | Cost of insurance for the building and its contents | ||||||||||||
| Interest and Bank Charges | Cost of mandated workman's compensation insurance | ||||||||||||
| Internet | The cost of Internet access | ||||||||||||
| Legal | The cost of outside legal services | ||||||||||||
| Licenses | Cost of the government required licenses to operate the establishment | ||||||||||||
| Linen Rentals | Cost of renting linens from a third party | ||||||||||||
| Maintenance | The costs associated with maintaining and repairing the restaurant and any equipment | ||||||||||||
| Music and Entertainment | Payments for bands, piped in music services, games, etc | ||||||||||||
| Paper Goods | The costs of the paper goods such as to-go containers, paper napkins, and other paper goods used by the establishment | ||||||||||||
| Phone | The cost of the phones for the restaurant | ||||||||||||
| Professional Fees | For any other professional services except legal and accounting | ||||||||||||
| Property taxes | Payment of tax on the propery | ||||||||||||
| Rent | The cost to rent the space; if it is owned, then the monthly mortgage payments are on the Statement of Cash Flows | ||||||||||||
| Rental of Equipment | The costs of a temporary rental of a piece of equipment | ||||||||||||
| Supplies | The costs of other items used in the restaurant such as guest checks or other miscellaneous items | ||||||||||||
| Trash Removal | The costs of the trash removal, grease removal, and other debris from the restaurant | ||||||||||||
| Vehicle Expenses | Expenses associated with operating a company vehicle - gas, insurance, repairs, etc | ||||||||||||
| Water and Sewage | The costs of water and sewage for the restaurant | ||||||||||||
| ((fill in additional missing expenses as needed)) | |||||||||||||
| Total Operating Expenses | |||||||||||||
| Operating Profit (Loss) | |||||||||||||
| Income Taxes | The payments made to the federal, state, and local government on the sales received | ||||||||||||
| Net Income (Loss) | |||||||||||||
| Balance Sheet Template | |
| Assets | |
| Cash and Cash Equivalents | |
| Operating Checking Account | The operating bank account is used for all the day-to-day deposits and payments for the restaurants ongoing activities. |
| Savings Account | The savings account is used to invest excess cash not required for operating activities. |
| Payroll Checking Account | The payroll checking account is used for all payroll-related disbursements. A separate bank account for payroll is recommended for payroll transactions for audit purposes. |
| Cash on Hand: Cash Drawers | The cash drawer account is used to track all cash receipts and disbursements from cash registers. |
| Cash on Hand: Petty Cash | The petty cash account is used for handling small expenses and disbursements. |
| Cash on Hand: Tips Holding Account | The tips holding account is used to account for tips to be paid out to servers. |
| Undeposited Funds | All other funds not deposited are recorded here. |
| Receivables | |
| Accounts Receivables | This is monies owed to the operations |
| Accounts Receivables - Credit Cards | An account for credit card transactions |
| Inventories | |
| Food Inventory | This inventory represents the cost of any food inventory on hand. |
| Alcohol Inventory | This inventory represents the cost of any alcohol inventory on hand. |
| Beverages Inventory | This inventory represents the cost of any beverage inventory on hand. |
| Paper Goods and Supplies | This inventory represents the cost of paper goods, supplies etc on hand |
| Chemicals - cleaning supplies | This inventory represents the cost of the chemicals and cleaning supplies |
| Investments | This account is used to track the cost basis of investments |
| Fixed Assets | |
| Land | This account is used to track the cost basis of the land |
| Buildings | This account is used to track the cost basis of the buildings |
| Furniture | This account is used to track the cost basis of furniture at the restaurant. |
| Kitchen Equipment | This account is used to track the cost basis of kitchen equipment at the restaurant. |
| Front of the House tabletop | This account is used to track the cost basis of table top items at the restaurant |
| Leasehold Improvements | This account represents the cost basis of any building modifications made to accommodate the restaurant, such as painting, remodeling, or other improvements. |
| Accumulated Depreciation | Accumulated depreciation represents the total depreciation on tangible assets at a specific date. |
| Total Assets | |
| Liabilities | |
| Payables | |
| Accounts Payable | This payable account represents amounts the restaurant owes to vendors. |
| Credit Card Payable | This payable account represents the amounts owed on company credit cards. |
| Gift Certificates Payable | This payable account represents the amount of gift certificates purchased but not yet redeemed by customers. |
| Federal Payroll Taxes Payable | Amounts due to the federal government for payroll taxes are recorded in this account. |
| State Payroll Taxes Payables | Amounts due to the state government for payroll taxes are recorded in this account. |
| Sales Tax Payable | Sales tax collected and not yet remitted is recorded in the sales tax payable account. |
| Current Portion of Long Term Debt | This is the current payments on long term debts |
| Notes Payables | This payable account represents current payments for notes and long terms leases |
| Long-term Liabilities | |
| Loans Payable | The loans payable account represents the principal balance outstanding on any loans. |
| Interest Payable | The interest payable account represents the interest outstanding on any loans. |
| Equity | |
| Owner's Capital Account | This equity account represents the total of the owners capital contributions in addition to any increases/decreases from annual profits or losses. |
| Owner's Drawing Account | This equity accounts represents the total of any withdrawal of capital from the restaurant business by the owner. |
| Retained Earnings | This account is the accumulated Net Incomes from the start of the establishment |
| Total Liabilities and Owner's Equity |
