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Using the Coffee Roasting Operations Flow Chart in the Somby’s Cafe case study ?

26 / 01 / 2019 Certificate IV In Commercial Cookery (SIT40413)

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Part A: Balance sheet
Background
Anna has been operating the coffee cart for 12 months now. Its time to prepare the annual accounts and although Annas accountant will be preparing the financial reports, Anna wants to get an idea of the balance sheet for her own peace of mind.

You are required to prepare a Balance Sheet for Sombys Caf as at 31 December 2016 using the figures provided below:
The current Income Statement shows a profit of $5,500 as at Dec 2016
Other equipment (including the coffee machine etc) purchased cost $60,000 and will be depreciated at 20% per annum
10kg Coffee Roaster Machine – this costs $75,000. Anna paid a $15,000 deposit with her own cash and a commercial loan has been approved for the balance at a 15-year loan term with 8% interest. Assume no capital repayments have yet been made on the loan and interest not yet paid. A year’s interest payment is past due.
The coffee roaster is to be depreciated at 20% per annum
Anna has invested her inheritance of $12,000 and her personal loan of $50,000
Anna has taken drawings of $20,000 for the past twelve months
The cafs bank balance is at $9,260
The lawyers in the next building have a company tab with the caf and at the time of this balance sheet they owe $650
The current inventory stands at $10,250
Anna prepaid her insurances and the balance is $4,000
Accounts payable are $2,700
Outstanding wages are $1,800
Gas Bottles – Annual hire fee $260. The annual hire fee is paid after the year end and has not yet been paid
Stalls and tables cost $500.00 from an old church that had been recently decommissioned. Anna paid for these with her own cash. The stalls/tables will be depreciated at 20% per annum
As a reminder – Capital Introduced will include any of her own resource used, including the coffee roaster deposit, the inheritance cash, the personal loan taken and any physical assets introduced
Accounting knowledge and principles

Based on your learning and exercising your research skills, answer the following questions:

2. What are the fundamental differences between the two main financial reports?
3. Identify two separate groups of stakeholders for Sombys Caf and for each identify:
a. Types of decisions they could make using financial information
b. Financial information that would help them in making decisions
As the cafs popularity is growing, Anna is considering purchasing another coffee machine to streamline customers better; especially at 10 am and 3 pm since customers only have a few minutes to order and receive their coffee; ultimately she doesnt want to lose potential sales or to create a reputation for slow service.
4. From your understanding of accounting practices, present your stance on whether you think this is a good idea, considering operational efficiency and effectiveness.
5. What would you recommend as the best course of action? Include your rationale.Part B Task/description:
Operations management concepts as they relate to Somby Caf, write a series of suggestions for Anna for managing the growth of her business (each concept should be 500 words in length).
1. Inventory Management
a. Organising measures and authority for non-durable goods produced.
b. Using the Coffee Roasting Operations Flow Chart in the Somby’s Cafe case study .
c. What steps are missing and need to be included to ensure quality?
2. From an accounting and operations perspective, explain to Anna in practice what decisions need to made and require an action plan in working towards efficiency and effectiveness for the caf.
3. Anna is actually quite an environmentalist at heart. What ideas would you recommend to Anna in offsetting the cafs carbon footprint? Justify your reasoning and whether you think it is something that Anna could promote.
4. If the primary good for the caf is coffee, what are the peripheral goods/services that the customer recognises, pays for, uses and experiences?
.
Part C Task/description:
Background
Using the case study (Somby’s Caf) as your guide, Anna needs to have some Human Resource (HR) documents developed which will help her make employment decisions. She also has a couple of ideas which she would like your thoughts on.

1. Write a generic job description for the front-of-house staff, using a table format.
2. Based on the needs and/or ideas identified in the Somby’s Caf Case Study under the page titled ‘Anna needs more help’, develop a set of eight interview questions that Anna can use for future interviews.
3. As part of the interview process, Anna would like to present a scenario to the potential employee that would showcase their problem solving and communication techniques within the answer given. Develop a scenario (no more than 200 words) that Anna can use in the interview process and briefly describe the techniques that have been considered in writing the scenario.
4. In the cafs first year, Anna considered the training and development of the original staff. Using this as a basis create a 12-month training schedule that includes both existing training and development needs and potential needs/development that you consider are important for all employees at the caf, now and in the future. Within the training schedule consider the needs and development of the existing staff; individually or collectively where appropriate.
5. Investing in training and development of staff has Anna wondering about how to retain good staff. How can she help them stay motivated, offering quality service to customers and loyalty to the caf? Present your ideas that you think are suitable for Sombys caf.


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