Fancy Food Business: Gourmet Restaurant in UAE

This report provides a detailed business plan and market analysis for Fancy Food Business, a gourmet restaurant in UAE. It includes information on the products and services offered, target market segments, and implementation strategies.

Running head: Entrepreneurship and Innovation
Name of the student
Name of the university
Student ID
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Table of Contents
Executive summary....................................................................................................................2
Introduction................................................................................................................................4
Discussion..................................................................................................................................5
3.0 Company summary:.........................................................................................................5
3.1 Startup summary:.............................................................................................................5
3.2 Startup funding:................................................................................................................6
3.3 Company ownership:.......................................................................................................9
4.0 Description of business:...................................................................................................9
4.1 Products and services:......................................................................................................9
4.2 Summary of market analysis:.........................................................................................10
4.3 Segmentation of market:................................................................................................10
4.4 Strategy of target market segment..................................................................................11
5.0 Implementation and strategy summary:.........................................................................12
5.1 Competitive edge:..........................................................................................................12
5.2 Sales strategy:.................................................................................................................12
5.3 Pricing strategy:.............................................................................................................13
5.4 Facilities and location:...................................................................................................13
6.0 Summary of management:.............................................................................................13
7.0 Financial plan:................................................................................................................14
7.1 Assumptions:..................................................................................................................14
7.3 Projected profit and loss:................................................................................................15

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7.2 Projected cash flow:.......................................................................................................16
7.4 Projected balance sheet:.................................................................................................17
7.5 Projected break even analysis point:..............................................................................17
Conclusion................................................................................................................................19
Reference..................................................................................................................................20
Appendix..................................................................................................................................23

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Executive summary
The following report give a brief description of a business plan on which is carried out for a
out for a business named as “Fancy Food Business”. The setup of the business is planned to
execute in United Arab Emirates. The restaurant seeks to offer an authentic taste of gourmet
foods in Emirates. The restaurant will provide number of delicacies from different regions
which will provide a delightful experience to the customers. The restaurant will provide good
quality food as well as satisfactory customer service. The management of the business is
designed strategically and critically which would help the business to tackle the competition
in the food business and would foster the productivity of the business. The restaurant seeks to
create strong customer base in the market and could able to generate good profit and revenue
by perpetuating high customer footfalls throughout the business.

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Introduction
The growing business of restaurants has taken a toll in various regions. In order to get
a predefined executable business, it is necessary to project a business plan. The following
paper is gives a structured analysis of a fancy food restaurant which is to be located in United
Arab of Emirates. This report describes the nature of the business, the marketing and sales
strategy and analyzing the financial background containing the loss statements, projected
profit and revenue as well as other important prospects for a business. The overview of the
company is mentioned in the paper as well as how the company will initiate its business with
the help of business plan. The business plan includes market analysis of the environment such
as market segmentation, the target market, main competitors. Strategies have been used for
marketing and sales which will help the business to tackle its competitors and run the
business smoothly. The management team who are responsible for various functions and
operations are mentioned in the report. The Fancy Food business states the financial planning
which is very necessary for any business such as its assumptions, the financial statements, the
balance sheet, cash-flow projection and break-even analysis for future forecast of profit and
revenue from the business.

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Discussion
3.0 Company summary:
Fancy food business would be a value add manufacturer of food such as sea food,
chicken and meat with unrelenting focusing on the taste, quality and specification of health.
With the introduction of the Gourmet food, the restaurant would be able to add extra
dimension to the hospitality needs of guest. This would be done by serving the tempting
delicacies, firing up perfect barbeque and other range of products to satisfy all the gourmet
needs of the customers. The restaurant would be located in Fujairah, United Arab Emirates,
P.0 Box 5059.
3.1 Startup summary:
The food and beverage is the most significant sectors in UAE. Through analysis it is
observed that UAE provides a very favorable environment for food business (Harris 2019).
According to BMI reward/risk index, Emirates is ranked first in the region wise and as fourth
globally in food and beverage industry. The organization seeks to pin its business by offering
very high quality and authentic cuisines from all over the world (Adobor 2019). The
organization endeavor to provide comfortable and soothing ambience which would
complement the quality of food offered to the customers. The attractive ambience and
gourmet food will attract the customers and ultimately reach to customer delight as a result of
which the company would gain maximum profit and revenue (Kanyan et al. 2016). The
restaurant provides best Italian and Tuscan cuisine, the food of the restaurant bridges
elegance, simplicity, serving-hand crafted, and the regional Italian specialties from Umbria,
Tuscany and Emilia-Romagna.

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The organization believes that in order to get an effective and efficient business and healthy
workable environment for the employees working inside the organization. This will help to
attain job satisfaction within the employees and will create a happy environment. Through
this manner, the organization provides best customer satisfaction by delivering better quality
food and services to the customers (Kuratko et al. 2017).
The essential elements of the business are:
a) Location: The fancy food restaurant is located near major market areas of Emirates where
people would find it easy to track the location and for easy transportation. The location is
decided through strategic evaluation and market analysis. The location plays a major role in
retaining customer footfalls each day which will directly help t generate profit for the
organization.
b) Quality of food: The food offered is Italian cuisine with highest quality which will provide
the finest experience of traditional and authentic delicacy to the customers.
c) Interior Design and Ambience|: The interior design is glimpse of Italy and gives an essence
of Italy, the customers can enjoy Italian food as well as the can feel the Italian décor inside
the restaurant. This acts as the USP of the restaurant which will allow a huge number of
customers inside the restaurant.
c) Quality of Service: Impeccable service is providing that would print a great impression in
the minds of customer, better services compel the customers to come back to the restaurant
this will help to attain customer retention.
3.2 Startup funding:
Fancy food business would be set up by making an initial investment of $ 231500 and all the
initial amount of cost that would be required to incur in the business would be covered in this

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particular amount. The necessary funding of the restaurant outlet is also done by taking long
term loan of amount of $ 98000. All the requirements and needs of business have been
addressed by acquiring an area of 4000 square feet. Therefore, Fancy food business will be an
entity that would be privately held by the two partners.

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3.3 Company ownership:
Fancy food business would be owned by two partners and the bulk of startup
financing is provided by them. The restaurant will be managed by group of people from Italy
and Dubai.The two partners named Zafar Sheikh would be operating the business as family
with occupying a crucial position in running of the business. The main chefs are from Italy
and Dubai. The restaurant is operated as a family. The members of the group occupy
important designation in the business. The Italian member already owns a restaurant in Italy
and has great experience of 7 years. The chefs are from Italy and will provide numerous
Italian cuisines.
4.0 Description of business:
Fancy food gourmet business is a restaurant that intends to offer customers with wide
range of gourmet products and will be located primarily in Fujairah, UAE. The Gourmet
business will be a 300 seat dining restaurant that would be focused on quality, taste and
health specification. Fujairah is a city of UAE that is located in the eastern coast that share
the international border with the Oman Sultanate. Since the place is considered as the place of
major tourist attraction, it is considered suitable for opening up of restaurant that would offer
extended hospitality to the customers.
4.1 Products and services:
The range of products offered by the Fancy food business are the Italian delicacy like
risotto, lasagna, pasta, bottarga, ossobuco and many more items as well as it serves burgers
such as chicken burger, breaded burger and beef burger which is kind of fast food dishes.
Other product ranges include glazed, breaded, kebabs and koftas. Under gazed, customers
would be offered with varieties such as calibrated chicken breast, tender chicken breast and
marinated chickens. Breaded would comprise of chicken nuggets, chicken fillet, chicken
finger and chicken burger. Kebabs include chicken kebab, beef kebab and chicken kofta.

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Many restaurants provide good food but if they lack in good service it will slower the
footfall of customers as many expectations are there when customers enter in the restaurants.
Therefore, the Fancy Food restaurant provides good food as well great service for the
customers (Gordon et al. 2016). There are over more than 500 staffs who will serve the
customers so that the customer will not face any difficulty or late arrivals.
4.2 Summary of market analysis:
The Fancy Food Business has the maximum capacity for around 300 people. The
business is located at a greater location which attracts huge number of customers throughout
the day. The location is chosen in a way that will generate massive surge of customers. It will
also provide high competitive edge in the market.
Before entering inside the market the business analyses the external and internal
environment as the fancy food business provides unique service to the customer it is highly
benefited with competitive advantage. At the initial period the organization must undergo
licensing procedures which is dealt by legal environment. The political and economic issues
must be considered as the economic condition of Emirates is good therefore the expected
customers are the premium customers who can afford going to the fancy restaurant (Rockas
2019).
4.3 Segmentation of market:
The restaurant industry in United Arab Emirates is booming and in the last five years,
it has witnessed rapid growth. It cannot be denied that the country is seen as the fastest
growing economies in the countries of Middle East and it is expected that a considerable
number of dining outlets would be opened in the country (Salzberg et al. 2019). It is
indicating by the market research that the Gourmet food market would continue a fast paced
growth and opening up of a restaurant is considered to be the feasible option (Teixeira et al.

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2019). Fancy food business would be segmenting its customers based on the characteristics
such as income, age group and the food habits of customers (Gordon et al. 2016). The
segmented customers would include people who prefer eating out and trying new delicacies
along with the tourists for which the location of restaurant is regarded as the attraction of
great tourist destination. In order to attract new customers, the restaurant would offer special
theme nights and there will be a fine dining in a cozy atmosphere. The style of service and
creative food will make every customer feel special and welcome. Following groups are
defined as the target segments based on the analysis of market.
The business man- Businessman often stay in the strange city after working hard all day and
for impressing the clients, a competent establishment is needed by him. These people intend
to spend money on food and drinks.
High end singles- The layout and décor of restaurant would help in attracting them. The
engaging clientele and excellent service, striking artwork and wide range of products will
help them in getting the feeling of being in the coolest place.
Tourists-Many vacationers would be attracted by the restaurant and is considered as the
attractive destination offering wide range of gourmet foods.
Family- Fancy Food business can be considered as the perfect place for family dinner as they
seek friendly service and accommodative menu.
4.4 Strategy of target market segment
The reasons for choosing the above people as the target market segment because they
visit restaurants frequently and are willing to spend money on dining service at their valuable
services (Teixeir et al. 2019). The target market segment strategy which is adopted by Fancy
Food is differentiation strategy. As the organization provides high competition and it is trying
to give those products and services which adds high value to the customers and an attempt to

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become unique within the industry (Li et al. 2019). Additionally, the business seeks to
provide high quality food and services to the customers with premium quality and hence the
pricing strategy used is premium pricing. As the restaurant is located in a well constructed
and fine environment with many renowned companies, it will attract business man where
they can have business meeting and conferences (Widuri et al. 2019).
5.0 Implementation and strategy summary:
The fancy food business must undergo various strategies and critical analysis to
understand the market. The increasing demand and popularity of Italian food among the
people of Emirates this is the key reasons which have brought competition within the
restaurants. There are many restaurant serving varieties of products and services therefore it
is difficult to underpin the new Fancy Food Business in the market (Kuratk et al. 2017).
Another strategy is feedback, the serving staffs are advised to get feedback from the
customers so that the customers could feel free to address themselves and even the business
can improve itself in all possible ways. Additionally the theme of the restaurant is different
from other restaurants the customers can get a vibe of Italy without visiting Italy. The staff
members have certain knowledge on Italy food history so the customer gets to know about
the food they will be having. This is why it becomes important to retain the staff with
adequate amount of proper training. The staff members have performance recognition so that
they will perform better and maintain the decorum of the restaurant.
5.1 Competitive edge:
There are many restaurants in United Arab Emirates which offers great Italian food
with good quality and service. The demand and popularity of Italian and fast food is famous
in Arab. The main competitors of fancy food restaurants in Emirates Are W Dubai-, The
Palm, Solo Dubai, MATTO Italian restaurants. These restaurants provide high and premium

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quality services in the market but apart from this the fancy restaurants provides superior
interior Italy décor and as well as fast food for fast food lovers with affordable cost. Thus, in
this way where the fancy food can sustain in the market retaining maximum number of
customers (Brinckmann et al. 2019).
5.2 Sales strategy:
5.3 Pricing strategy:
The pricing strategy is very important for the business as it determines the total
revenue and profit which is to be incurred later. The pricing strategy used by the organization
is penetration pricing and premium pricing (Brink et al. 2018). The penetration pricing will
lure the customers with its low price. It helps to attract the customers at the initial stage and
premium pricing or prestige pricing which keeps the price of products and services artificially
high so as to encourage favorable buyers to apprehend about the product and service (Barrow
et al. 2015).

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5.4 Facilities and location:
The restaurant is located at the heart of emirates where the customers can reach
without any halt. The location is near renowned hotels and companies where customers can
easily get into Fancy Food Business and it is easier for the working people for business
meetings and conferences. The 4P’s of marketing where the place of the business plays a
major role while incorporating a new business. It determines the customer footfall throughout
the business.
6.0 Summary of management:
Fancy Food is incorporated by a group of member who is well experienced and will
take forward the business as a family. As an entrepreneur, the managerial position is handled
by us and the other positions like the marketing, accounting and human resource have been
assigned to the outsiders.
Management Team:
General Manager- The restaurant general manager is Zakhir Sheikh which is highly
experienced and has finished hospitality management from an renowned university. The
general manager must be dynamic in nature and the one who could handle pressure and risk
at the same time. Excellent leadership skills are the key prospect of a manager which is
noticed in him (Ward 2016).
Accounting Manager- The accounts manager is responsible for all the accounting and
financial analysis. The account manager must be experienced in its domain as cash is the
most important asset for the company (Teece 2018). The accounts manager is responsible for
maintaining all the daily operations like expenses, the profit and revenue incurred by the
business. Ultimately it determines the overall performance of the business (Gabler et al.
2017).

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Marketing Manager- The marketing manager is responsible for the promotional activities
which will help the business to showcase its presence in the market and to attract the
customers. This helps the business to spread awareness in the minds of the customers for
customer footfalls.
7.0 Financial plan:
Financial Plan for a startup starts with sales forecast, creating an expense budget,
developing a cash-flow statement, income projections, dealing with asset and liabilities of the
business and later analyzing the break-even analysis.
7.1 Assumptions:
Some of the assumptions that were made in the development of the financial plan of Fancy
Food business are as follows:
 It is assumed that the furniture’s would depreciate under the straight line method
while computers and other equipment’s would depreciate at reducing balance method
at the rate of 20%.
 The rate of Corporation tax is assumed to be at 30%.
 The percentage of contribution is assumed to be at 55%.
 The estimated cost of startup expenses for the business would be $ 231500. Total
sources of funds comprised of funds contributed by owners and that of loan taken
from bank.
 The amount of accrued rent is assumed to be fixed over the years.
7.3 Projected profit and loss:

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The restaurant
business started with
the initial investment
of $231,500 and the
total startup asset
$358,650. The gross
profit in the first year
is found to be
$195,000. According
to the projected profit
and loss statement the ROC I found to be 85% at first year, 53% in the second year and
62% in the third year.

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7.2 Projected cash flow:

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7.4 Projected balance sheet:
7.5 Projected break even analysis point:
Average fixed cost 52515
Contribution % 55%

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Conclusion
Therefore from the above report a projected business plan is designed for “Fancy
Food Business”. The business plan helps the business to structure its overall operations and
functions. The restaurant earns a good amount of profit in the first years itself. The strategy
which has been used in the business helps the business to grow and increase its productivity
underpinning its name in the market. An entrepreneur must understand its business USP of
the business this makes the firm unique in the market and helps the entrepreneur to achieve
its objective and goals. Therefore a business plan pays a major role in initiating a business
providing a proper skeleton to the business.

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Reference
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suggestions. Business Horizons.
Barrow, C., Barrow, P. and Brown, R., 2015. The business plan workbook: A practical guide
to new venture creation and development. Kogan Page Publishers.
Brinckmann, J., Dew, N., Read, S., Mayer-Haug, K. and Grichnik, D., 2019. Of those who
plan: A meta-analysis of the relationship between human capital and business planning. Long
Range Planning, 52(2), pp.173-188.
Brinckmann, J., Dew, N., Read, S., Mayer-Haug, K. and Grichnik, D., 2019. Of those who
plan: A meta-analysis of the relationship between human capital and business planning. Long
Range Planning, 52(2), pp.173-188.
Brink, K.D., 2018. The Friendly Ogre: A Business Plan(Doctoral dissertation, The College of
St. Scholastica).
Gabler, C.B., Panagopoulos, N., Vlachos, P.A. and Rapp, A., 2017. Developing an
environmentally sustainable business plan: An international B2B case study. Corporate
Social Responsibility and Environmental Management, 24(4), pp.261-272.
Gordon, R.T. and Brezinski, M.H., 2016. The complete restaurant management guide.
Routledge.
Hair Jr, J.F., Wolfinbarger, M., Money, A.H., Samouel, P. and Page, M.J., 2015. Essentials of
business research methods. Routledge.
Harris, T., 2019. How do you write a business plan?. In Start-up (pp. 119-126). Springer,
Cham.

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Kabir, M.N., 2019. Strategy, Strategy Formulation, and Business Models. In Knowledge-
Based Social Entrepreneurship (pp. 245-280). Palgrave Macmillan, New York.
Kanyan, A., Ngana, L. and Voon, B.H., 2016. Improving the Service Operations of Fast-food
Restaurants. Procedia-Social and Behavioral Sciences, 224, pp.190-198.
Kuratko, D.F. and Hornsby, J.S., 2017. New venture management: The entrepreneur’s
roadmap. Routledge.
Lee, C., Sardeshmukh, S. and Hallak, R., 2018. Understanding the innovation development
process in restaurants smes. CAUTHE 2018: Get Smart: Paradoxes and Possibilities in
Tourism, Hospitality and Events Education and Research, p.121.
Li, J., Zhang, F. and Sun, S., 2019. Building consumer-oriented CSR differentiation
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McKeever, M., 2016. How to write a business plan. Nolo.
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transforming technology-based new ventures' product introductions into growth. Journal of
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Rockas, R., 2019. Strategies for Success in Small Business Bakeries: A Business Plan.
Rockas, R., 2019. Strategies for Success in Small Business Bakeries: A Business Plan.
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Teixeira, R.M., Andreassi, T., Köseoglu, M.A. and Okumus, F., 2019. How do hospitality
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24Entrepreneur and Innovation
Appendix
1. Sales Forecast and Cash-flow forecast
(1) SALES FORECAST
Year 0 1 2 3
Projected Sales 315,000
362,25
0 434,700
(b) Cost of goods 120,000
126,00
0 136,080
(2) CASHFLOW FORECAST
Preop
Year 0 1 2 3
CASH INFLOWS
Cash from Sales 315,000
362,25
0 434,700
Directors loans 98,000 98,000 98,000 98,000
Capital Employed 100,000 200,000
220,00
0 242,000
Other cash inflows
TOTAL CASH INFLOW 198,000 613,000
680,25
0 774,700
CASH OUTFLOWS
Payments for materials 120,000
126,00
0 136,080
operating expenses ( ) 0
Premises (rent, rates) 0 5,500 5,500 5,500
Wages and salaries 0 12,500 15,000 18,750
General expenses 0 1,050 1,260 1,575
Interest and bank charges payable 0 0 0 0
Lease payments 0 0 0 0
Corporation Tax 36,453 45,219 58,517
Market survey costs 0 7,500 9,000 11,250
Other preliminary expenses 0 1,050 1,260 1,575
capital expenditure
Plant and other capital expenditure 0 60,650 60,650 60,650

25Entrepreneur and Innovation
financing repayments
Loan repayments 7,840 7,840
TOTAL CASH OUTFLOWS 0 244,703
271,72
9 301,737
Cash flow summary
NET CASHFLOW FOR
PERIOD 198,000 368,297
408,52
1 472,964
OPENING CASH BALANCE 0 198,000
566,29
7 974,818
CLOSING CASH BALANCE 198,000 566,297
974,81
8 1,447,782
2. Profit and Loss Forecast
(2) PROFIT AND LOSS FORECAST
Preop
Year 0 1 2 3
Revenue 0
315,0
00
362,
250
434,
700
Cost of sales 0
120,0
00
126,
000
136,
080
Gross profit 0
195,0
00
236,
250
298,
620
Gross Margin
229,9
43
256,
739
298,
162
Expenses/overheads
Leased Premises Rent 5,500
5,50
0
5,50
0
Wages
12,50
0
15,0
00
18,7
50
Administrative Expenses 1,050
1,26
0
1,57
5
Communication Expenses
15,00
0
18,0
00
22,5
00
Marketing Expenses 7,500
9,00
0
11,2
50
Rates 6,500
7,80
0
9,75
0
Insurance 2,500
3,00
0
3,75
0
Other general expenses 6,250
7,50
0
9,37
5

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Interest 1,350
1,62
0
2,02
5
Market survey 7,840
7,84
0
7,84
0
Prelim expenses 7,500
9,00
0
11,2
50
Total expenses/overheads
73,49
0
85,5
20
103,
565
Profit before tax
121,5
10
150,
730
195,
055
Tax @ 30%
36,45
3
45,2
19
58,5
17
Profit after tax
85,05
7
105,
511
136,
539
Transfer to reserves
121,5
10
150,
730
195,
055
ROC 85%
53
%
62
%
Forecasted
Year 0
FY-
1
FY-
2
FY-
3
(a) CAPITAL
Capital
Employed
200,
000
220,
000
242,
000
Loans
98,0
00
Loan repaymts 0
7,84
0
7,84
0
(b) SALES
FORECAST
Projected Sales
315,
000
362,
250
434,
700
(c) COST OF
GOODS
120,
000
126,
000
136,
080
(d) EXPENSES
(Overhead)
Leased Premises
Rent
5,50
0
5,50
0
5,50
0
Wages
12,5
00
15,0
00
18,7
50
Administrative
Expenses
15,0
00
18,0
00
22,5
00
Communication
Expenses
7,50
0
9,00
0
11,2
50
Marketing
Expenses
6,50
0
7,80
0
9,75
0
Rates 2,50 3,00 3,75

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0 0 0
Insurance
6,25
0
7,50
0
9,37
5
Other general
expenses
1,35
0
1,62
0
2,02
5
Interest
7,84
0
7,84
0
7,84
0
Market survey
7,50
0
9,00
0
11,2
50
Prelim expenses
1,05
0
1,26
0
1,57
5
(e) FIXED
ASSETS
Furniture
14,0
00
14,0
00
14,0
00
Freezers
20,0
00
20,0
00
20,0
00
Equipments
20,5
00
20,5
00
20,5
00
Computers
6,15
0
6,15
0
6,15
0
Total Fixed
Assets
60,6
50
60,6
50
60,6
50
Start Up Expenses
Start-up Expenses
Fixed Costs Particulars Amou
nt ($)
Website Development
Cost
$13,00
0
Leased Premises Rent
$10,00
0

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License cost $9,500
Warehouse and office
rent $8,500
Utility deposit (Gas,
electric and water) $8,200
Wages and salary for
three month
$13,00
0
Staff training cost $6,500
Marketing and sales
cost
$15,00
0
Office equipment $5,500
Transportation cost $7,000
Insurance
$14,30
0
Working capital
$70,00
0
Total Fixed Costs $180,5
00
Average Monthly Costs
Rent $1,083
Interest on loan 9% $792
Postage & Telephone $458
Gasoline and Oil $1,083
Salaries / Wages $833
Total Average
Monthly Costs $4,250
x Number of Months: 12

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Total Monthly Costs $51,00
0
Total Startup Expenses $231,5
00
Start-up Assets
Sources of funds
Owners Fund $200,0
00
Total Owner
Funding
$200,0
00
Loans
Bank Loan $98,00
0
Other
Total Loans $98,00
0
Total Start up Funds $298,0
00
Assets
Computers 6150
Furniture $14,00
0
Freezers $20,00
0
Equipments $20,50
0
Total Fixed Assets $60,65
0
Total Start-up Assets $358,6
50

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Balance Sheet
Assets FY-1 FY-2 FY-3
Current Assets
Cash $368,297 $408,521 $472,964
Accounts receivable $315,000 $362,250 $434,700
Total current assets $683,297 $770,771 $907,664
Fixed (Long-Term) Assets
Computers 6,150 6,150 6,150
Vehichels $20,000 $20,000 $20,000
Furniture $14,000 $14,000 $14,000
Equipment $20,500 $20,500 $20,500
(Less accumulated depreciation) $8,560 $7,494 $6,641
Total fixed assets $52,090 $47,006 $47,859
Total Assets $735,387 $817,777 $955,522
Liabilities and Owner's Equity
Current Liabilities
Accounts Payable 121,455
Accrued Rent $5,500 $5,500 $5,500
Bank Charges Payable $0 $0 $0
Income taxes payable $36,453 $45,219 $58,517
Accrued salaries and wages $12,500 $15,000 $18,750
General Expenses $1,050 $1,260 $1,575
Current portion of long-term debt $98,000 $90,160 $82,320
Total current liabilities $274,958 $157,139 $166,662
Long-Term Liabilities
Long-term debt $98,000 $90,160 $82,320
Less: Loan Repayment $7,840 $7,840
Total long-term liabilities $98,000 $98,000 $90,160
Owner's Equity
Owner's investment $200,000 $220,000 $242,000
Net Profits $85,057 $105,511 $136,539
Reserve and Surplus $121,510 $150,730 $195,055
Total owner's equity $406,567 $476,241 $573,594
Total Liabilities and Owner's Equity $779,525 $731,380 $830,415

31Entrepreneur and Innovation