1. Finance for non-financials Leadership skills

2. What are the financial Statements ?

3. Basic financials statements Income statement. Balance sheet. Funds flow.

4. Income statements GOI = Revenue - ( Direct Costs + Indirect Costs ) GOI = Gross Operating Income GOP = GOI - Controllable Un-allocable Expenses GOP = Gross Operating Profit

5. Profits Profit = Revenues - costs NP = GOP - ( Uncontrollable Un-allocable Expenses ) NP = Net Profit

6. Balance Sheet Assets = Liabilities + Owner’s Equity

7. Funds flow Statement Carefully 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 ).

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

9. Calculating Food / Beverage cost percentage Food cost percentage = Food cost ÷ Food sales × 100

10. Ingredients markup Prime ingredient Markup. Profit pricing. Contribution margin ( CM ).

11. Yield Tests Butcher Yield Test ( BYT ). Cooking Yield Test ( CYT ).

12. Inventory Calculations Consumption = Beginning - Ending Inventory 1. Inventory value based on FIFO. 2. Inventory value based on LIFO. 3. Inventory v. based on MOVING AVERAGE.

13. Menu Mix Analysis Menu Mix Sales ( MM % ). Contribution of the Menu ( CM % ). Average Contribution Margin ( ACM ).

14. Food Contribution Ratio = Food Revenue ÷ Food & Beverage Revenue × 100

15. 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).