The Cellar Door Restaurant: Financial Statement Analysis.

Essay by kkanrit3University, Master's December 2005

download word file, 6 pages 3.0

I. Executive Summary

By analyzing three years' financial statement of Cellar Door Restaurant Pty Ltd. including Balance sheets, income statements and cash flow to evaluate the company financial status. To avoid subjective point of view, this essay will respectively evaluate the company's performance and outlook from the perspective of a long-term lender, management based and trade creditor based using the Trend Analysis, Vertical analysis and important financial ratios.

II . Introduction

To better understand the business condition of Cellar Door Restaurant , It's needed to analyse the financial statement of three years by Finance structure, profitability, solvency and asset liquidity to know more about operation scale, ability of management and know which point should be improved as well as benefit to the stockholder .

III Company, Industry, and Economic Environment

A . Description of company and management

The Cellar Door Restaurant is a mid-sized restaurant located in a former mill, close to the edge of town in the wine district and is closely aligned with one of the wineries in the area.

It is family-owned and has been in operation for seven years. The Cellar Door Restaurant, is primary a cash business. The much heftier make-up on alcohol is a crucial source of income. Another important source of income is special functions such as weddings and group dinners.

In 2002-03 sales of Australian wine totalled approximately 919 million litres, with 402.5 million litres sold domestically and 516.5 million litres exported. Australian wine exports were worth over A$2.4 billion, an increase of 14.9 per cent from 2001-02. The principal destinations were the United Kingdom, the United States, New Zealand, Canada and Germany. Australia's largest wine export market in 2002-03 was the United Kingdom (209 million litres worth A$860 million), closely followed by the United States of America (142 million litres...