Financial Plan And Break-Even Analysis: Pizza Cottage, Inc.

Improved Essays
Cargo out costs will be accounted for in such a way that delivery prices won't vary from the prices offered at the counter. One case of pizza delivery prices is displayed underneath: 19-inch New York-style pizza, veggie lover, plain pies (shipping cost is included in the price).
 One pie, $21.90
 Four pies, $66.90
 Eight pies, $130.90.

Financial Plan and Breakeven Analysis:
According to our conservative evaluations, Pizza Cottage, Inc. is expected to keep up a sound financial position throughout the following five years. The accompanying plan outlines the financial improvement of our company. The business will be at first financed by a $30,000 five-year term advance and an aggregate capital investment of $101,500 (Robert William and Emilia
…show more content…
That is the reason our fundamental concern will be to have sufficient cash close by to meet our installment commitments, and be arranged for unexpected needs of cash. Notwithstanding ordinary cash inflows and outflows, we will focus on setting up sufficient cash holds for contingencies. That includes a conceivable credit extension with our bank that could be utilized as a part of moderate sales periods also. This is a decent approach to control the cash flow hazard. Also, excess cash, as projected, ought not to stay unmoving, especially amid times of high loan costs. Management will consider investing unmoving funds in time stores or certificates of store at banks, in government securities such as U.S. Treasury notes, or in other exchanging securities (cash counterparts). The accompanying chart demonstrates the projected cash flow for five …show more content…
We have recognized a few risks that are associated with our business project. There are numerous conceivable classifications of risks; however for the reasons of this plan, we have chosen to group them as takes after external and internal risks. Current patterns indicate that the economic downturn is reaching the base, and chances are that the recovery process will start soon. Be that as it may, it is liable to be a moderate process, and it will most likely take quite a long while until complete recovery and full development are achieved. We evaluate the risk of a noteworthy sadness to be low. Competition and purchasing designs changes. There is a high risk that new competitors will touch base in the pertinent marketplace. Our continuous change management methodology and cost control techniques will help us to keep focused of customer preference. The pizza customer purchasing examples are not prone to significantly change throughout the following five years. Likewise, the population development predicted in the range will increase the chances to keep up and help sales. Suppliers. Our company's purchases don't rely on upon a solitary or a constrained group of suppliers. There is a huge supply of materials and elements for pizza readiness, and other specific products in the Local Bay territory. The risk to face supply constrictions

Related Documents

  • Great Essays

    Synopsis of the case This case is based on the issues faced by TFI Food Equipment Solutions. Alex Pettes, who is the new president of privately owned industrial distributor (TFI). TFI is renowned supplier in Ontario and its head office is in Brampton. Alex is concerned about the national market for two new product lines; revolver by one-shot corporation and French fry machine by R-O International’s automatic respectively.…

    • 1135 Words
    • 5 Pages
    Great Essays
  • Great Essays

    Pizza Pizza – Changes in Sales, Total Assets, Shareholder’s Equity & Net Income Change in sales: Pizza Pizza’s sales have increased by 5.3% in 2015 to 533.8 million from 505.4 million in 2014, this was primarily due to geographic diversification among eastern provinces which helped provide consistent restaurant sales and stable growth in sales over the past five years. Change in Net Income: Pizza Pizza’s net income increased by 0.871% to 25.23 million from 25.16 million in 2014. The increase is mainly attributable to an increase in royalty income and a decrease in interest expense balanced by an increase in current tax expense. Royalty income had increase because of additional restaurants added to the same store sales pool on January 1,…

    • 1526 Words
    • 7 Pages
    Great Essays
  • Improved Essays

    Financial Practices As of December 31, 2014, Chipotle Mexican Grill, Inc a Delaware corporation operates 1,755 Chipotle restaurants in the US, 7 in Canada, 6 in England, 3 in France and 1 in Germany. Furthermore, the company also has nine Asian kitchen restaurants serving Asian cuisine and is also an investor of a Pizzeria local restaurant. The quarterly financial statements of the company includes all the accounts of its owned subsidiaries. Chipotle’s financial statements are prepared using the US generally accepted accounting principles (GAAP).…

    • 527 Words
    • 3 Pages
    Improved Essays
  • Decent Essays

    Kudler Fine Foods showed a profit for 2003, upon closer examination, our team believes that Kudler will continue to grow and profits will increase in the future. According to the current ratio, for every dollar of liability, there is close to $17 of assets to cover it, this implies that the short term debts will be easily paid if necessary. The Acid Test Ratio indicates the same healthy relationship between the liabilities and the assets, showing that the company can convert their assets quickly to create a quick conversion to cash. Inventory turnover indicates that the company does not tie up their cash for a long period of time; there is a quick change over rate.…

    • 275 Words
    • 2 Pages
    Decent Essays
  • Superior Essays

    Warrnambool Cheese Case

    • 1484 Words
    • 6 Pages

    Business and Strategic Analysis of Warrnambool Cheese & Butter Factory Holdings Limited 1.1 Company’s Activities Warrnambool Co. Limited is one of the leading producers of high-quality dairy products for the last 125 years. It is considered the oldest dairy producer and seller in the entire Australia Market. In addition, it longest existence in the marketing has led to its massive employment of the locals to work in its South-West Victoria site.…

    • 1484 Words
    • 6 Pages
    Superior Essays
  • Decent Essays

    Momma's Pizza Worksheet

    • 284 Words
    • 2 Pages

    Hello Mr Ray Marquez, I have created an Excel sheet for Momma's Pizza. This worksheet I have created will provide information and calculations of your Cash Proforma, Assumptions, Startup Costs, and charts of revenue and income. I am recommending for you to add an option of selling beer to your customers. Although this will raise your price of starting up your pizza restaurant; you will be making more profit if you sold beer. I have added an additional chart to show you what would happen if you sold beer in your restaurant.…

    • 284 Words
    • 2 Pages
    Decent Essays
  • Improved Essays

    Papa Johns Essay

    • 335 Words
    • 2 Pages

    The three greatest strategic challenges Papa John’s currently faces are maintaining brand recognition in a saturated market, continuing to produce fresh, quality pizza’s in spite of price limitations, and sustaining their ability to differentiate their pizza chain to maintain their portion of the market share. According to Porter’s Five Forces Model Papa John’s should be concerned with their existing rivalries, threat of substitutes, and the bargaining power of suppliers and buyers (Parnell, 2014). Papa John’s is in the top three national pizza chains and currently national sponsors of the National Football League and Major League Baseball. Marketing expenses are high as we all know especially when paying high endorsements to top athletes like Peyton Manning.…

    • 335 Words
    • 2 Pages
    Improved Essays
  • Improved Essays

    Dynashears Case Analysis

    • 1281 Words
    • 5 Pages

    Dynashears manufacturers a complete line of household scissors and industrial shears, and distributes their goods through jobbers to specialty, hardware and department stores. A cyclical business, Dynashears deals with a period of high sales during the months of July to December. By nature, cyclical businesses like Dynashears engage in short-term borring from banks to finance the additional working capital needed to support high sales periods. Dynashears is usually able to pay back its short-term loans by the end of the year. However, due to the economic recession, Dynashears sales began to not reach the projected level in July 1990.…

    • 1281 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    In the comparison of the 3 aforementioned pizza companies, Little Caesars, Papa John’s Pizza, and Pizza Hut, they share a number of similarities and differences in the individual elements of their operational strategy. For Little Caesars Pizza, being the world’s largest carry out pizza chain (Little Caesars, 2016), staying in that position means competitive priorities must be a core part of their operations strategy. For cost, Little Caesars Pizza features promotions on their website to offer their products at a competitive price to consumers (Little Caesars Pizza, 2016). With quality, Little Caesars Pizza states they are focused on “providing top-quality pizza made with fresh ingredients” (Little Caesars Pizza, 2016).…

    • 1068 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Currently the world witnesses a very dynamic, aircraft manufacturing industry, which invests billions and billions in its projects, due to tough market competitors. In order to achieve their goal and objectives, any project requires an efficient management. However, due to a diversity of issues, goals are not always achieved nor targets are met. During the 21st century, the aircraft manufacturing industry was leaded in the world by two major’s commercial jet manufacturers, namely Boeing and Airbus.…

    • 2435 Words
    • 10 Pages
    Improved Essays
  • Great Essays

    A lot of things can go unexpectedly and could have a negative impact on the company o Contractor missing deadlines will cause a delays and additional costs o Forecasted sales for products could be inaccurate o Shortage in capital, man power and materials could have a negative impact on DSF • Financial risk – DSF is at high risk with this move. Within three years, the company has to spend over 25 million lbs. in new equipment. o DSF will most likely acquire debt for this initiative which could lead to negative consequences if construction plans delay  The organization image could be damage if they can’t meet supply  The alliance members such as banks and investors could also be negatively impacted • Operational risk - Risks that affects ongoing management process shouldn’t be affected.…

    • 993 Words
    • 4 Pages
    Great Essays
  • Improved Essays

    With portfolio management, more focus is applied to the acceptance of the organization’s tolerance of risk throughout the project lifespan, financial and industry statuses, and the acceptance of risk for the organization (Vaidyanathan, 2013). The health, stability, and financial status play an important role in risk tolerance for an organization. While a project manager is influenced by these organizational factors, the amount of risk a project manager with accept within an endeavor is dictated by their style, the visibility of the project, skills he or she possesses, and the expectations of the stakeholders (Vaidyanathan, 2013). All of these factors impact the approach a project manager utilizes in managing, assessing, and executing a project. Since there are differences in how risks are assessed, managed, and evaluated, different approaches should be used in addressing risks for projects and…

    • 730 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    About the Company The Company primarily operates in the automotive segment. The company's automotive operations are further subdivided into Tata and other brand vehicles like Jaguar Land Rover which has enabled the company to enter the premium car market in developed markets such as the United Kingdom, the United States, Europe and China as well as several emerging markets such as Russia, Brazil and South Africa amongst others. Company produces wide range of products like Passenger Cars, Utility Vehicles, Light Commercial Vehicles, Medium and Heavy Commercial Vehicles. Automotive sector had an eventful fiscal 2017 due to ban on diesel cars, sale and registration of BSIII vehicles, and demonetization.…

    • 774 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Boeing is an Amercian multinational cooperation that offers aircraft and product support services (Boeing: The Boeing company, no date). Being in the aircraft business involves a lot of risk unless someone is not careful and decisions are not made through careful and accurate analysis. They need to be on top of their game at all times ensuring safety of passengers and to uphold a good reputation to be able to be successful in the industry, in the long run. Risk comes in a number of different ways and are often unexpected. Risk management is fundamental to all business activities.…

    • 862 Words
    • 4 Pages
    Improved Essays
  • Great Essays

    1.0 Executive Summary Supply Chain refers to the flow of products or services start from the point of origin from the supplier to end consumer (Investopedia, 2003). Supply chain management refers to the design and management of seamless, value added processes across organizational boundaries to meet the needs of end consumer. Supply chain management is very important for a company to success especially for those multinational companies as nowadays the supply chain emphasizes on building trust-based relationship with the supplier and the company can focus on their core competencies for a long term benefits with a common goals. A supply chain management started with key suppliers and has four important elements.…

    • 5288 Words
    • 22 Pages
    Great Essays