Fried Chicken Financial Analysis

There is a small fried chicken restaurant nearby named Cheogajip Chicken. This restaurant is on my top 5 best fried chicken restaurant; yes, it's that good. My family makes a purchase at this place at least once every quarter, it's locally owned by a Korean family that I occasionally bump into at our neighborhood Costco as they purchase business supplies. I wish the owners success and hope that this establishment grows and serves delicious fried chicken for year to come, this is why I select this company for this Journal.

How can Cheogajip Chicken owners or leaders benefit from financial statements. First, financial statements provides financial metrics that allows owners to make smart business decisions. Critical information from the balance …show more content…
“The accounting equation is the backbone of the accounting and reporting system. It is central to understanding a key financial statement known as the balance sheet” (Welcome to the World of Accounting, 2018). When Cheogajip property lease in up for renewal or in need of a new advance equipment, they can look into the balance sheet prior to making the decision. Second, cash flow and business state via the Income statement. The Income statement indicates the company’s health in terms of cash flow revenue going in and cash expenses that goes out. “The income statement provides information about revenues generated and expenses incurred.” (Welcome to the World of Accounting, 2018) This data is essential for Cheogajip, as it indicates if the business makes enough to cover operating expenses and/or make any profit on a certain period. Based on data with positive cash flow, Cheogajip can utilize this cash for marketing purposes, to further promote their business and reach more customers. For potential outside investors, this is the type of core information they must assess to