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Financial Analysis of Regency Blue Ribbon Restaurant

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Executive Summary In this paper, we present a detailed financial analysis of the Regency Blue Ribbon Restaurant. In the analysis, we include a detailed calculation of the 2007, 2008, 2009 and 2010 profitability, financial and business activity ratios. The profitability ratio calculation is limited to the calculation of Gross Profit, Net Profit and Return on Owner's Equity (ROI). The Financial stability ratio analysis involves the calculation of the Working capital/current and Debt while the business activity ratio analysis involves the calculation of the accounts receivables turnover. While performing the above calculations, the credit sales are pegged at 10% of the total sales while the credit terms are paged at net 30 days. After the calculation and analysis, we perform a further analysis aimed at comparing the results with industry averages. The actions to be taken in order to achieve future results that are close to or even better than the industry averages are then presented. We then discuss the future concerns that are identified in the given forecast as well as the necessary actions for addressing them. Introduction Aim The aim of this financial analysis is to present an accurate financial analysis of the Regency Blue Ribbon Restaurant in order to help in the provision of accurate forecast of its future performances. The financial ratio analysis is aimed at the accurate measurement of the general performance of the Regency Blue Ribbon Restaurant. These ratios

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