Be Our Guest Case Analysis

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Be our guest

Marketing analysis:
Be Our Guest, Inc. is a Boston based company that rents out party equipment for events within the Boston metropolitan area. Founder, Steve Lizio , initially started the company in 1983 with a sole purpose of providing wait staff to catering companies. However, as time proceeded it became apparent to expand the company by evolving it into a rental equipment company that provided rental services of tables, chairs and other miscellaneous items pertaining to hosted events. Typically expected in relatively new companies, the company operated at a loss during the first quarter, however as demand increased exponentially during the second and fourth quarter of the year, sales revenue spiked accounting for two- thirds …show more content…

success in branding themselves as a company of outstanding value is credited to their efficient delivery system and keeping speed and accuracy in mind. Be Our Guest, Inc. grew quickly from 1991 to 1997, with estimated revenues of nearly $2.7 million in 1997. Their efforts awarded them the Small Business Firm of the Year in 1997 by The Boston Chamber of Commerce nominated. Although company revenues grew 170% over the six- year span, general and administrative salary expenses caused their net earnings to decrease from 1994 to 1997. In addition, shareholders and creditors feared that the exponential growth that Be Our Guest, Inc. experienced from 1991 to 1997, is irreplicable in the upcoming …show more content…

In Be Our Guest, Inc.’s scenario, we can see that the total cash flow from operations increased from 1995, $168,000, to 1997, $229,000, by 37%. This increase to the CFO is a result of a few different accounts. Although net income decreased 22.8% from 1995 to 1997, because depreciation increased 25.8% from 1995 to 1997, the total net income adjusted for non-cash charges increased by 4% from $250,000 to $259,000, from 1995 to 1997. The changes to Accounts Receivable over the years reduce cash flow from operations by $75,000, $46, $42,633 in 1995, 1996, and 1997, respectively. These increases in accounts receivable cause the cash flow from operations to decrease because Be Our Guest, Inc. collected less money from their customers compared to the sales. Whereas, the changes in Accounts payable & accruals of, $5,768, $19,063, and $14,859, in 1995, 1996, and 1997, respectively, caused the cash flow from operations to increase because Be Our Guest, Inc. is paying their suppliers less, indicating they are retaining more cash for

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