You have just been engaged by Joey Ziti, owner of the For-geta-bout-it Pasta Emporium. They are...

 

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You have just been engaged by Joey Ziti, owner of the For-geta-bout-it Pasta Emporium. They are distributors of imported Italian pastas and cheeses. Over the years, they have become one of the premier suppliers of high quality imported Italian food products to bistros and specialty retail food stores. Their products have always commanded a high selling price in the market. Recently, Mr. Ziti was approached by Tommy Penne, a former executive with one of the largest pasta manufacturers out of Chicago. He presented an offer to Mr. Ziti that he couldn't refuse. He suggested that with the use of the internet and various ecommerce tools, he could almost guarantee that Mr. Ziti's business could triple in less than a year and the growth beyond that could be almost limitless. Mr. Ziti certainly was the pasta king in his local community, but he longed to be much more. The thought of being the Godfather of the specialty pasta business was just what he wanted. At their first strategy session, Tommy P. asked Joey if he had prepared the financial statements for the For- geta-bout-it Pasta Emporium for 2020 and if he had analyzed the results. Tommy explained that as part of a feasibility study, they should get a "better handle on the numbers"! Joey said he would go back and get the information from his Controller, Tony Manicotti. When Joey approached Tony and requested the financial statements and analysis, Tony explained that they stopped doing that 2 years ago because they took too much time and they were never right. Upon hearing this, Joey Ziti yelled a few words in Italian and then 2 in English, "YOU'RE FIRED!" You have always been considered a close friend and confidant of the Ziti family, and so Mr. Ziti gave you a call to request a sit-down meeting to discuss his problem. He would like to engage your services to prepare the financial statements and do this "analysis" that Tommy keeps talking about. He also is interested in exactly what this information will tell him about his business. In a short but detailed essay, explain specifically what you expect to tell Mr. Ziti at your meeting. You have just been engaged by Joey Ziti, owner of the For-geta-bout-it Pasta Emporium. They are distributors of imported Italian pastas and cheeses. Over the years, they have become one of the premier suppliers of high quality imported Italian food products to bistros and specialty retail food stores. Their products have always commanded a high selling price in the market. Recently, Mr. Ziti was approached by Tommy Penne, a former executive with one of the largest pasta manufacturers out of Chicago. He presented an offer to Mr. Ziti that he couldn't refuse. He suggested that with the use of the internet and various ecommerce tools, he could almost guarantee that Mr. Ziti's business could triple in less than a year and the growth beyond that could be almost limitless. Mr. Ziti certainly was the pasta king in his local community, but he longed to be much more. The thought of being the Godfather of the specialty pasta business was just what he wanted. At their first strategy session, Tommy P. asked Joey if he had prepared the financial statements for the For- geta-bout-it Pasta Emporium for 2020 and if he had analyzed the results. Tommy explained that as part of a feasibility study, they should get a "better handle on the numbers"! Joey said he would go back and get the information from his Controller, Tony Manicotti. When Joey approached Tony and requested the financial statements and analysis, Tony explained that they stopped doing that 2 years ago because they took too much time and they were never right. Upon hearing this, Joey Ziti yelled a few words in Italian and then 2 in English, "YOU'RE FIRED!" You have always been considered a close friend and confidant of the Ziti family, and so Mr. Ziti gave you a call to request a sit-down meeting to discuss his problem. He would like to engage your services to prepare the financial statements and do this "analysis" that Tommy keeps talking about. He also is interested in exactly what this information will tell him about his business. In a short but detailed essay, explain specifically what you expect to tell Mr. Ziti at your meeting.

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The following will have to be prepared for previous two years Income Statement This will show how mu... View the full answer