Just Coffee Copy
ACTG5100 Section U Assignment #2
Just Coffee Case Analyses
Roles/Actors
1.Myriam-Senior Partner
2. Both the partners
3. Consultant (That is ME)
Objectives-
Myriam- is concerned about the health of the 2nd cafe, needs to know the financial health of the café, to make future decisions and wants to understand partnership details/options for the café.
ME- To investigate business viability for Myriam, understanding the financial statements to find out errors more preciously to find accounts, which should not exit in the statements.
To analyze the partnership contract and give my recommendation Constraints-
Canada Revenue Agency for tax purposes for the partners could be a constraint.
Analyses of the given questions
1.Troublesome Accounts in the financial Statements
Interest and bank charges - $7530
As per the information Just coffee has no bank loan, so it has to be found out, what these charges comprise of, as they shouldn’t be part of the Income Statement. The banks might charge monthly fees on the accounts but it can’t be this high.
Travel A/C - $2211
There is no mention of any required business travel in the information provided by Just Coffee. Clarification is required for this account.
Vehicle A/C - $3303
It’s clearly mentioned that no vehicle is required to carry out the general day to day activities of the café. All the food deliveries are made to the restaurant and Just coffee has no vehicle lease outstanding.
Some other recommendations from my side
Other accounts where attention is required
a) More information is required on meals and entertainment account ($2610) as staff meals are already accounted for.
b) Insurance costs are on a higher side when compared with Statistics Canada (Small Business- Nova Scotia), approximately by $714.
c) It’ll be worthwhile to cut all other expenses which are not related to business, at least in the coming few years, such as Donations for $410.
d) Inventory account is missing in the balance
Just Coffee Case Analyses
Roles/Actors
1.Myriam-Senior Partner
2. Both the partners
3. Consultant (That is ME)
Objectives-
Myriam- is concerned about the health of the 2nd cafe, needs to know the financial health of the café, to make future decisions and wants to understand partnership details/options for the café.
ME- To investigate business viability for Myriam, understanding the financial statements to find out errors more preciously to find accounts, which should not exit in the statements.
To analyze the partnership contract and give my recommendation Constraints-
Canada Revenue Agency for tax purposes for the partners could be a constraint.
Analyses of the given questions
1.Troublesome Accounts in the financial Statements
Interest and bank charges - $7530
As per the information Just coffee has no bank loan, so it has to be found out, what these charges comprise of, as they shouldn’t be part of the Income Statement. The banks might charge monthly fees on the accounts but it can’t be this high.
Travel A/C - $2211
There is no mention of any required business travel in the information provided by Just Coffee. Clarification is required for this account.
Vehicle A/C - $3303
It’s clearly mentioned that no vehicle is required to carry out the general day to day activities of the café. All the food deliveries are made to the restaurant and Just coffee has no vehicle lease outstanding.
Some other recommendations from my side
Other accounts where attention is required
a) More information is required on meals and entertainment account ($2610) as staff meals are already accounted for.
b) Insurance costs are on a higher side when compared with Statistics Canada (Small Business- Nova Scotia), approximately by $714.
c) It’ll be worthwhile to cut all other expenses which are not related to business, at least in the coming few years, such as Donations for $410.
d) Inventory account is missing in the balance