Be Our Guest Essay

2229 Words Jun 11th, 2012 9 Pages
Be Our Guest, Inc.

Be Our Guest is a growing firm specializing in providing high-end equipment and services to catering firms. The company is considering its financial needs and appropriate capital structure to ensure available funding for growth and flexibility as well as to meet the day-to-day needs of its highly seasonal business. This paper attempts to analyze the key success factors of the firm and assess the appropriate funding levels from both the company?s perspective as well as that of the bank.

1. What are the key success factors for Be Our Guest?

The core benefit Be Our Guest provides is high-end equipment outsourcing and logistical support. The company differentiates itself based on the quality of its service and a
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12,500 21,117 30,052 24,263 -
Other Current Assets 682 13,332 700 2,678 2,678
Total Current Assets 238,920 338,444 334,873 369,552 298,270
Property & Equipment
Rental Equipment 768,481 928,391 1,077,484 1,251,080 1,478,932
Leasehold Improvements 102,272 133,850 208,827 278,508 369,733
Total PP&E 870,753 1,062,241 1,286,311 1,529,588 1,848,665
Less Accumulated Dep. 414,988 551,214 679,734 851,053 1,068,665
Net Property & Equipment 455,765 511,027 606,577 678,535 780,000
Net PP&E/Sales 25.7% 25.9% 28.1% 25.6% 26.0%
Depreciation/average PP&E 14.09% 10.94% 12.17% 12.88%
Loans to Shareholder & Aff. 140,000 130,000 168,000 75,950 75,950
Total Assets 834,685 979,471 1,109,450 1,124,037 1,154,220

Current Liabilities
Bank Line of Credit 75,000 - 98,270 140,000 140,000
Current Installments of Note 32,539 53,388 70,651 75,268 0
Borrowing from Shareholders 17,000 32,816 32,816 - -
Accounts Payable & Accruals63,465 69,233 88,296 103,155 103,155
Total Current Liabilities 188,004 155,437 290,033 318,423 318,423
Term Notes Payable Less Current 226,814 337,109 317,266 243,311

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