Presentation+finance - Essay Example

rder to get vital information since one of our objectives of our research was to report truly and fairly on the financial affairs and the performance of the business. Therefore out of all the possibilities we had, we landed an evergreen bar and restaurant a newly established and independently owned business in town. First we wanted to know how the business was financed and how it continues to be financed. But to get an answer to this, we asked for the balance sheet and our main aim was the financial structure in the capital structure of the firm.

We found from the financial structure that most of the firm is owned by ‘owner’ unlike outsiders. By “owners” it means the ordinary shareholders formed 85% of the financial structure. The other 15% represented ownership from preference shareholders. Then on whether the firm uses bank facilities like bank overdraft, we found from the balance sheet that at one point in time the firm used the facility. But we had to obtain confirmation from the bank whether the overdraft was given. This was confirmed to know whether the restaurant sells its products and services at recommended prices. b) We compared this prices with what other similar restaurants are offering.

We found out that the firms sells their products and services at slightly higher prices and enquiry were told that evergreen bar and restaurant enjoys and enviable goodwill in the area. But goodwill as an asset cannot be measured reliably and therefore we ha to compare the number of customer who visit the restaurant vis–a-vis other restaurants. They exceed the other restaurants and therefore enjoy relative goodwill. We also used the questionnaire method of collecting information to establish whether the customer were satisfied with both he services given whether the price they paid for the goods and services was worth.

Our team also wanted to establish whether all daily sales were promptly and accurately recorded and also whether all purchases we