Week Four EOC; Question Two

Answers: 

a. The change in cash increased and there for reflected a use of funds. It was increased by $14,000. The differences of sources and uses can be explained in the book by "One tool that can be used to help you identify money inflows and outflows of a hospitality business is to calculate its sources and uses of funds from its balance sheets from last period to this period. Sources represent inflows and uses represent outflows of funds for the hospitality business" (Dopson 147).

b. Net Recievables, "Money owed by customers to a business calculated after subtracting any amounts that may not be collectable" (Dopson 480), also increases resulting in a use of funds as well. The amount that it was increased by was $30,000.

c. Notes payable decreased which ended up becoming a use of funds increasing by $44,000. The book states that "Notes payable are short-term loans (less than a year). If you decrease notes payable by paying back money you borrowed, this is a use of funds for you" (Dopson 151).

d. The retained earnings, "Accumulated account of profits over the life of the business that have not been distributed as dividends" (Dopson 483), increased which resulted in a sourceof funds. This was incrased by $104,000.

e. The total amount of sources and funds ended up totaling to $743,000.

Dopson, Lea R. Managerial Accounting for the Hospitality Industry. Wiley, 09/2008. VitalSource Bookshelf Online.

Week Four EOC; Question Three

Answers:

a. Rachel's cash percent is at 3.7% which is half less than the averages of the chain. What this means is that Rachel is losing more money than the other chains are. "those who operate a business must consistently have sufficient cash on hand to pay their employees, their vendors, and the taxes owed by the business" (Dopson 117).

b. Rachel's inventories are 1% higher than the national average. The book defines inventories as "In the hospitality industry, inventories will include the value of the food, beverages, and supplies used by a restaurant, as well as sheets, towels, and the in-room replacement items (hangers, blow dryers, coffee makers, and the like), used by a hotel" (Dopson 124). This may mean she has more product avaiable on hand than other chains which will mean less spending in the next month.

c. Rachel's accounts payable percentage is a little over 1% higher than the chain's average percentages. This means she owes more money than the other chains typically would. This is important because "the most important sub-classifications of current liabilities include notes payable, income taxes payable, and accounts payable" (Dopson 126).

d.  Rachel's notes payable is also 1.4% higher than the chains averages which means she also has more money owed in this area than she should.

Dopson, Lea R. Managerial Accounting for the Hospitality Industry. Wiley, 09/2008. VitalSource Bookshelf Online.

Week Three EOC; Best Restaurant Experience

When I think about the best dining experience I have ever had, one restaurant comes to mind first and that is an Italian restaurant located in Saint Louis, Missouri called Zia’s. This particular restaurant is located in an area known as The Hill which is home to several Italian cuisine restaurants. There were several different aspects that have made this one of my favorite experiences. To start with, the entire atmosphere of the restaurant is phenomenal. Everything from the lighting, to the tables and floors gave off a spectacular vibe. I particularly remember having to wait somewhere around thirty minutes for a table but not being bothered at all because the waiting area was so lovely and the staff was so friendly. Once we were sat down we were introduced to our waitress who, like the staff in the front, was very kind. The service was also very efficient which is something that always makes my experience in a restaurant fantastic. I remember having ordered the baked seafood ravioli and being astonished at how fantastic it tasted for such a reasonable price. Prior to my meal I had also kept it simple and ordered the garlic cheese bread, which was by far the best I have ever tasted. The reason I remember this particular experience so well was because of how flawless every single step of the dining process was. Usually when I am dining out there is usually a consistency of mediocre service somewhere along the process but that did not happen at this restaurant and it remained that way all of the times I returned. Their slogan found on their website “Come to Zia's On the Hill and experience the true taste of Italy” is the perfect and straightforward message for their restaurant. This restaurant has left me with a lasting impression and forever stay as one of my “go to” places for Italian in my hometown of Saint Louis.


Zia's. "Zia's On The Hill." Zia's On The Hill. N.p., n.d. Web. 24 Oct. 2016.

Week Two EOC; Question Four

a .Lisa's Accrual accounting showed a higher net profit by $2,500.

b. Laura's Cash accounting is much more accurate and will show how much money has already been spent and a precise number of what is left. According to the book, accuracy is important because "Clearly, if the bookkeeping tasks of the servers, bartenders, kitchen staff, and managers of a restaurant, and the front desk, controller, and other staff of a hotel are not properly performed, the resulting financial data generated by these business’s accountants will not be accurate and decisions made based upon the numbers supplied are likely to be flawed as well."

c. The accounting method that most accurately shows expensive regardless of when they were paid is the accrual accounting. The reason for this lies with the fact that the accrual shows exactly what is happening throughout the expenses and even includes what has not yet been paid yet.

d. Again, similar to question c, accrual is going to be the most efficient due to the fact that it shows all expenses and tracks the ones that have yet to receive payment, which is going to show an accurate representation of expenses. Correlating with the book "the accrual system instructs accountants to record expenses when they are incurred regardless of when they are paid."

e. Laura's Cash Accounting format is much more accurate in terms of cash inflow. It will show the numbers for exactly what has been received in cash and which has not, which is something the Accrual form lacks. "Just as the going concern principle requires accountants to value a business’s assets at their purchase price, with few exceptions, it requires businesses to set the value of the items it intends to sell at the price the business actually paid for them."

f. Accural accounting is going to be the most accurate reflection of the restauraunt's profitiblity. The reason for this is the ability of this form to show a true understanding of the profits.

My Voice

Recently moving from Saint Louis, Missouri to Las Vegas, Nevada I have recently started a whole new life experience. Leaving my former school of Missouri State University to attend The Art Institute of Las Vegas I have high aspirations of moving my career in a whole different direction. Everything I have done has been centered on my love for fashion. I am currently working on my degree in Fashion Retail Management and gaining as much knowledge as possible to pursue my passion as a buyer. Growing up I have always had an immense love for fashion but never knew exactly which direction I wanted to take it. I began focusing on both the design and merchandising aspects of the fashion industry but have since learned that becoming a buyer is the right direction for me to take. The type of clothing that I appreciate working within is mixture of athleisurewear with streetwear. Brands that have influenced me towards this direction are Adidas Originals, Nastygal, Monki and combination of several others. I am still currently in the middle stages of finding my niche and exactly where I want fashion to take me. I am hoping there will be plenty of new life experiences to lead me there.

Week One EOC; Quiz Answers

Answers:

a. Is it legal?

No, Laurie using the sampling hot dogs for a back yard barbecue would be not legal because she is stealing company property for her own personal use. You must also consider whether or not it is permissible within the guidelines established by the company for which you work (Managerial Accounting for the Hospitality Industry 19).

b. Does it hurt anyone?

Yes, using the hot dogs given to her by the vendor for her own use in a backyard barbque is hurting the company. These are not her property to use and need to be used for the business, not managers use. "Discounts, rebates, and free products are the property of the business, not the manager" (Managerial Accounting for the Hopsitality Industry 19).

c. Am I being honest?

 Laurie is being extremely dishonest. If her actions were to be uncovered she could potentially be seen as dishonest and potentially diminish her reputation. Using the hot dogs for her barbecue instead of her business usage would affect her integrity as a professional.

d. Would I care if it happened to me?

Yes, I would most definitely care if an employee of mine was using business property for her own use. This would refelct poorly on the company and would promote the other employees of the company to take similar actions which would be illegal. "Your general manager would see it, other employees would see it, all of the other purveyors that you are going to do business with would see it, and even potential future employers would see it" (Managerial Accounting for the hispitality Industry 19).

e. Would I publicize my action?

No, If Laurie would be to publicize her actions she would be putting her job at risk. This would not be something she would tell her boss so it is extremely unethical.

f. What should be done with the two cases of hot dogs?

The two cases of hot dogs should be used by the business, not Laurie's personal use.