May $15,20$X$5$

Over three years have passed by since Ronald made the choice to start up Rhy$$s Fries. His humble start on the food convention and carnival scene has now led him to being the operator of three restaurants, a food truck and a catering segment. The success is not without challenges though, and Ronald is facing one of his most difficult to date.

Approximately a year ago, Ronald$$s long time employee and director of the food truck and catering segments abruptly left the company. When asked why he was leaving, Peter simply indicated that he felt there were better opportunities elsewhere. What Ronald did not know at the time was the Peter had been planning to open his own restaurant using many of the same techniques and products that he learned about during his tenure at Rhy$$s Fries. About two months after his departure Peter opened his restaurant aptly named $$Peter$$s Poutines$.$

In less than one year Peter$$s Poutines has proven itself to be a significant competitor to Rhy$$s Fries. Although they offered similar menu items Peter$$s prices were generally slightly higher. Peter did have one advantage however; his location was a high traffic area in an upscale area of the city. On top of that, Peter appears to have started construction on a second restaurant that will be opening soon. Ronald wonders what this extra competition will mean for him. He has already noticed that some days the business is just not as busy as it once was and is starting to seriously contemplate what he should do to counter this growing competitive threat.

He$$s tasked Sarah to go work with Uncle Bob to take a serious look at his financial statements and provide him with some insight into his operations. Maybe they can see something in the numbers that he can$$t$.$

$9.)$ Analyze the statements in Appendix $3$ and $4$ for any trends, issues or items of note. Prepare a management report for Ronald with your findings and any recommendations you have. Include any calculations or working papers along with the report.Appendix $1-$ Sales, Cost of Sales and Expenses related to July $14-$ July $29,20$X$1$

$*$Ending inventory refers to the balance of inventory at the end of the event.

Note: Assume all inventory purchases and travel expenses were paid in cash.

Appendix $2-$ Accounts Receivable aging as at January $31,203$Appendix $1-$ Sales, Cost of Sales and Expenses related to July $14-$ July $29,20$X$1$

$*$Ending inventory refers to the balance of inventory at the end of the event.

Note: Assume all inventory purchases and travel expenses were paid in cash.

Appendix $2-$ Accounts Receivable aging as at January $31,203$