Finance for non-Finance for non-financialsfinancials

Leadership skills

What are the financial Statements ?

Basic financials statements

Income statement .

Balance sheet .

Funds flow .

Income statements

Profits

Balance Sheet

Funds flow StatementCarefully mid the coming three cases

There is cash surplus .

( Cash in is more than cash out ). There is cash shortage . ( Cash in is less than cash out ) . There is cash balance . (Cash in equals cash out ) .

The food cycle

1. Purchasing .2. Receiving .3. Storing .4. Issuing .5. Pre-preparation .6. Preparation .7. Service .8. Sales

Calculating Food / Beverage cost percentage

Food cost percentage

= Food cost ÷ Food sales × 100

Ingredients markup

Prime ingredient Markup .

Profit pricing .

Contribution margin ( CM ) .

Yield Tests

Butcher Yield Test ( BYT ) .

Cooking Yield Test ( CYT ) .

Inventory CalculationsConsumption = Beginning - Ending

Inventory

1.Inventory value based on FIFO .

2.Inventory value based on LIFO .

3.Inventory v. based on MOVING AVERAGE .

Menu Mix Analysis

Menu Mix Sales ( MM % ) .

Contribution of the Menu ( CM % ) .

Average Contribution Margin ( ACM ) .

Food Contribution Ratio

=Food Revenue ÷ Food & Beverage

Revenue × 100

Zero Based Budgets

1. Define Revenues .2. Calculate Relevant Direct Costs .3. Calculating Relevant Indirect Costs .4. Subtract Direct & Indirect Costs From

Revenue .5. Allow a ( + or - ) 2% Tolerance to

find (DPM) .