Prepared By

S.M Hasib

Date of Submission: 27 June 2012

Letter of Transmittal

27 June 2012

To: Sumaiya Zaman (Course Instructor)

From: Hasib and his group members

Subject: Request to accept our transmittal

Dear Madam,

We are given pleasure to transmit this report, “BnB Cash Budget”

under Financial Management Course, during summer semester (7th)

2012 of USB program, BBA department, ULAB.

We have arranged our superlative efforts in organizing this term

paper. We enormously enjoyed it.

We are expecting that you are accepting our transmittal.

Leader Signature

S.M Hasib

Date: 27/06/2012

Table of Contents

Page No.

Executive Summary iii

1. Introduction 2

1.1 Origin of the report 2

1.2 Objectives 2

1.3 Scope 2

1.4 Methodology 2

1.5 Limitations 2

2.1 The History of Fast Food 4-5

2.2 BnB Background 6

3. Cash Budget 8-10

4.1 Findings 12

4.2 Conclusion 12

4.3 Recommendation 12

5. Appended

5.1 Appendix: Sample Survey Form 14

5.2 Bibliography 15

List of Illustrations

List of Table:

Table 1: 2 months Information of BnB related to cash budget 8

Table 2: BnB cash budget of April and May 9

Table 3: BnB cash budget from June to September 10

Executive Summary

The objective of the project is to know in detail of BnB Cash

Budget, to know about BnB and its services and it also contains a

brief introduction of Cash Budget. The company BnB provides

good quality food to meet their costumer’s requirement and its having

a good profit. This report contains the scope of our study and clearly

mentions the research methodology utilized both primary data and

secondary data. We have gathered some information about the history

of fast food through which we came to know about the first fast food

chain. Also, how the fast food restaurant began and day after day how

one after another fast food has grown. Along with this we have

reported on a very recent growing fast food, BnB in Bangladesh. Then

we have worked on six months of BnB cash budget to know their

future financial status which seems to be very good. After seeing their

cash budget we found very few problems. If they work out on this

particular problem then in future they will be in a higher position in

the fast food sector of Bangladesh. Various sets of questionnaire

have been prepared which helped us in doing the Cash Budget.

The research area is Dhanmondi, Dhaka . Our research design

was Exploratory.

1. Introduction

A cash budget is extremely important, especially for small businesses,

because it allows a company to determine how much credit it can

extend to customers before it begins to have liquidity problems. For

individuals, creating a cash budget of BnB is a good method for

determining where their cash is regularly being spent. This awareness

can be beneficial because knowing the value of certain expenditures

can yield opportunities for additional savings by cutting unnecessary

costs.

1.1 Origin of the report

The report has been required to fulfill BUS 302

1.2 Objectives

1. Introduction

Chapter 2

Origin of

the report Objectives Scope Methodology Limitation

to know the history of fast food.

to know about BnB and its service.

to know in detail of BnB cash budget.

to do some recommendation.

1.3 Scope

This study has focused upon the Cash Budget of BnB. Through

our report we try to find out the Revenue, Tax, Capital,

Disbursements, Loan and other information of BnB related to Cash

Budget. We hope this study will help to whom, who want to know

more clearly about Cash Budget of BnB.

1.4 Methodology

We used primary sources by interviewing general people.

We also used secondary sources through finance books

and internet sites.

1.5 Limitations

BnB have no website, they can be found only in Facebook.

The History of

Fast food

Chapter 3

About

Burger n Boost

The History of Fast Food

Restaurants have been around in some form for most of human

civilization. But they usually catered to travelers. As far back as

ancient Greece and Rome, inns and taverns generally served food to

people who had a reason to be away from home. This trend continued

until relatively recently. Although taverns and coffee houses were

popular places to gather and share beverages in the 17th century, the

idea of eating out for fun didn't take off in Western society until the

late 18th century.

Although McDonald's was the first restaurant to use the assembly-line

system, some people think of White Castle as the first fast-food chain.

White Castle was founded in 1921 in Wichita, Kansas. At the time,

most people considered the burgers sold at fairs, circuses, lunch

counters and carts to be low-quality. Many people thought hamburger

came from slaughterhouse scraps and spoiled meat.

White Castle's founders decided to change the public's perception of

hamburgers. They built their restaurants so that customers could see

the food being prepared. They painted the buildings white and even

chose a name that suggested cleanliness. White Castle was most

popular in the American East and Midwest, but its success helped

give hamburger meat a better reputation nationwide. So, like cars,

White Castle played an important part in the development of fast

food.

The McDonald brothers opened their redesigned restaurant in 1948,

and several fast-food chains that exist today opened soon after. Burger

King and Taco Bell got their start in the 1950s, and Wendy's opened

in 1969. Some chains, like Carl's Jr., KFC and Jack in the Box,

existed before the Speedy Service System, but modified their cooking

techniques after its debut. McDonald's, which started it all, is now the

world's largest fast-food chain.

However, McDonald's and fast food in general does not always get a

welcoming reception around the world. McDonald's restaurants have

been attacked in several countries, including the United States, China,

Belgium, Holland, India, Russia, Sweden and the U.K. Protestors

have accused McDonald's and other chains of selling unhealthy food,

marketing aggressively to children and undermining local values and

culture.

BnB (Burger n Boost)

Burger n Boost is a locally their fast food outlet that is quickly

turning into a national chain as it enjoys tremendous growth. Through

creative approaches and quality food and service the company has

created a name for itself in the local fast food market. They provide a

combination of excellent food at value pricing, with fun packaging

and a great atmosphere.We have reported on Burger n Boost

restaurant in Bangladesh. Burger n Boost started their journey very

recently on 10th September 2011. It started with 25 employees. Its

decoration is well maintained. Their food is good. Their business

statement is “Best Burger In Town.” Their service: Takes

Reservations, Walk-Ins Welcome, Good for groups, Good for kids,

Take out, Delivery, Outdoor seating.

Burger n Boost

Cash Budget

Table 1: 2 months Information of BnB related to cash budget

Source: Primary

Cash balance on April, 2012: 200,000tk.

The company maintains a minimum cash balance: 100,000tk.

Tax paid: 15%

Month Item Receipts (taka) Payment(taka)

April,2012 Capital 1,500,000 1,000,000

Revenue 1,300,000 1,000,000

May,2012 Capital 1,500,000 1,000,000

Revenue 1,350,000 1,100,000

Burger n Boost

Cash Budget

Chapter 4

Burger n Boost

Cash Budget For the period from April to May, 2012

Table 2: BnB cash budget of April and May

Particulars April May

Opening cash balance 200,000 805,000

Receipts

Capital 1,500,000 1,500,000

Revenue 1,300,000 1,350,000

Total cash available Before Disbursement 3,000,000 3,655,000

Disbursement

Capital 1,000,000 1,000,000

Revenue 1,000,000 1,100,000

Tax 195,000 202,000

Cash balance after Disbursement 2,195,000 2,302,500

Minimum Cash balance required 100,000 100,000

Surplus/(shortage) 705,000 1,252,500

Financing

Loan taken - -

Repayment of loan with

interest

- -

Closing balance 805,000 1,352,500

Outstanding Loan Balance - -

Burger n Boost

Cash Budget For the period from June to September, 2012

Table 3: BnB cash budget from June to September

Particulars June(tk.) July(tk.) August(tk.) September

(tk.)

Opening cash balance 1,352,500 2,249,000 3,667,100 5,851,740

Receipts

Capital 1,500,000 1,500,000 1,500,000 1,500,000

Revenue 1,890,000 2,646,000 3,704,400 5,186160

Total cash available Before

Disbursement

4,742,500 6,395,000 8,871,500 12,537,900

Disbursement Capital 1,000,000 1,000,000 1,000,000 1,000,000

Revenue 1,210,000 1,331,000 1,464,100 1,610,510

Tax 283,500 396,900 555,660 777,924

Total Disbursement 2,493,500 2,727,900 3,019,760 3,388,434

Cash balance after

Disbursement

2,249,000 3,667,100 5,851,740 9,149,466

Minimum Cash balance

required

100,000 100,000 100,000 100,000

Surplus/(shortage) 2,149,000 3,567,100 5,751,740 9,049,466

Financing Loan taken

- - - -

Repayment

of loan with

interest

- - - -

Closing balance 2,249,000 3,667,100 5,851,740 9,149,466

Outstanding Loan Balance - - - -

Findings

Chapter 5

Conclusion

Recommendation

Findings

1. Their minimum cash balance is only 100,000tk which is

insufficient.

2. Their Capital is Fixed which is not increasing.

Conclusion

After analyzing the six month of BnB cash budget, we can say that

they are improving every month. Their opening cash balance, revenue

is continuously increasing which is good for a company. As a

growing company, they are continuously making surplus. Still they

did not make any deficit; if they continue their business like this then

in future they will be in a higher position in the fast food sector of

Bangladesh.

Recommendation

Through our findings we can identify that minimum cash

balance is not sufficient they should increase this. Because if by

chance their wages, tax, supplier payments and other payments

become shortage then they can recover it through their

minimum cash balance.

We can see that their surplus is increasing day by day but their

capital is not increasing. Because if they convert their surplus

into capital then their liquidity will decrease. So, it will be good

for the company.

Appendix

Chapter 6

Bibliography

Reference

Appendix: Sample Survey Form

How many employees are working in the organization?

How much wages are paid to the employees?

How much revenues are earn in every month?

How much capital are invested in the business?

Is any loan taken? If so then how much?

Do they give any tax or vat?

How many expenses are there in the organization?

How much cash balance are required in every month?

When did BnB started their journey?

What are the services of BnB?

Bibliography

Besley, S & Brigham, EF, Essentials of Managerial Finance, 14th edn, Alex

von Rosenberg, USA

Herrold, Claudia Y.W. July/August 2000,"How to Carve a Pie." Foundation

News and Commentary, Vol. 41, No. 4, The Council on Foundations,

Washington D.C.

Herrington, J. 1981,"Financial and Strategic Management for Nonprofit

Organizations," Englewood Cliffs: Prentice-Hall.