A local barbecue restaurant

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Reference no: EM13910294

1. (7b) Tanisha is the chef for Q's BBQ, a local barbecue restaurant. She wants to create a line of smoked BBQ chicken and brisket, but needs a new smoker, which will cost a few thousand dollars.  She's done her homework and feels that the restaurant would more than make its money back with this new line of smoked meats.

She approaches the owner, Quentin, with her request.  After talking it over, they both agree it could be a huge seller.  However, Quentin needs to know if the restaurant has enough cash on hand to purchase the smoker.

Which financial statements would Quentin consult to determine if Q's BBQ has enough cash on hand to purchase the smoker?  What are three key financial statements? How do they differ and how is each one used?  Which statement or statements would Quentin use do determine whether or not they can purchase the smoker today. 

2. (7a) Both Sharnell and John work for Orange Industries, a large technology company out of Silicon Valley in California.  One of Sharnell's primary jobs is to put together the income statement and other financial statements for Orange Industries.
 
John, on the other hand, takes the income statement that Sharnell puts together, analyzes it, and advises top management on financial matters.
 
What role does Sharnell play at Orange Industries?  What role does John play? What are the differences between accounting and financial management?  Why is it importt to understand the differences between accounting and financial management?  Which role would you prefer to play in a company?  Why? 

Reference no: EM13910294

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