CARIBBEAN EXAMINATION COUNCIL

SCHOOL BASED ASSESSMENT (SBA)

PRINCIPLE OF ACCOUNTS

Name of Candidates: Kimberly Paul (0901000523)

Nakeisha Noharpersad (0901000477)
Savita Sahadai (0901000701)
Tamera Ouckama (0901000493)
Uricella Lalgie (0901000336)
School: Saraswati Vidya Niketan
Subject: Principles of Accounts
Teacher’s Name: Eddie Basdeo
Center Number: 090100
Proficiency: General
Territory: Guyana
__________________________________________________________________
Title: An assessment of how West Central Mall at Leonora has affected the sales and
profitability of Chicken ‘n’ Burger Delight in Leonora.
 TABLE OF CONTENTS

Title ________________________________________________________________________ 3

Objectives____________________________________________________________________ 4

Background/Overview__________________________________________________________ 5

Methodology __________________________________________________________________6

Presentation Of Data ____________________________________________________________7

Financial Data___________________________________________________________ 14

Trial Balance _________________________________________________________14

Income Statement _____________________________________________________15

Statement Of Financial Position ___________________________________________16

Ratios _______________________________________________________________17

Analysis Of Data ______________________________________________________________19

Findings ____________________________________________________________________21

Conclusion __________________________________________________________________22

Recommendation _____________________________________________________________23

Bibliography _________________________________________________________________24

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 TITLE

An assessment of how the West Central Mall at Leonora has affected the sales and profitability

of Chicken ‘n’ Burger Delight in Leonora.

—3—
 OBJECTIVES

1. To determine the sales and profit of Chicken ‘n’ Burger Delight for 5 months, August-

December, 2022.

2. To determine the sales and profit of Chicken ‘n’ Burger Delight for 5 months, August-

December, 2023.

3. To analyze crucial factors that impacted the sales and profit in 2023.

—4—
 BACKGROUND/OVERVIEW

Leonora, situated between Anna-Catherina and Stewartville, lacked small businesses and fast

food outlets, creating a significant demand. Chicken 'n' Burger Delight seized this opportunity,

establishing itself at Lot 3 Leonora in June 2021 expanding from the original one in Veen-en-

hoop established in 2012, strategically located near schools and the local market.

Initially thriving due to its monopoly and prime location, the advent of West Central Mall in

September 2023 posed a threat with its array of fast food options. This prompted concerns about

potential sales and profit declines for Chicken 'n' Burger Delight.

The researchers selected "An assessment of how the West Central Mall at Leonora has affected

the sales and profitability of Chicken ‘n’ Burger Delight in Leonora" to apply accounting

principles and financial analysis techniques in a real-world context. Analyzing this topic

provides insights into consumer behavior trends, crucial for adapting to changing preferences in

the retail landscape. This project not only enriches the researchers' understanding of accounting

principles but also offers practical experience in assessing business performance amidst external

influences.

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 METHODOLOGY

To gather information for the assessment, primary sources like questionnaires and interviews,

along with analyzing financial records as a secondary source, were utilized. Data collected fell

into two categories: qualitative and quantitative.

A questionnaire, comprising 15 questions (12 closed-ended, 3 open-ended), was distributed to 30

randomly selected households on December 13th, with 25 retrieved by December 27th, 2023.

Despite its advantages like time-saving and cost-effectiveness, the method posed challenges due

to limited respondent contact, making interpretation of open-ended responses difficult.

The interview questions sent to the business provided additional insights but faced similar

challenges during analysis. Random sampling helped reduce biases, though non-returned

questionnaires hindered generalization of findings.

Researchers meticulously extracted, recorded, and examined the data to support their research.

However, due to limited contact with respondents, determining their sentiments on the subject

was challenging. Despite these challenges, the combined use of questionnaires, interviews, and

financial records provided valuable data for the assessment.

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 PRESENTATION OF DATA
PRIMARY DATA

Question 7

Which factors do you think influenced your decision to choose Chicken ‘n’ Burger Delight over

West Central Mall?

Options Responses
Quality of food 5
Pricing 8
Location 1
Ambiance 1
Variety of Menu Items 5
Promotions and discounts 5
TOTAL 25

Table 1: Factors influencing respondent's decision to choose Chicken ‘n’ Burger over West

Central Mall

Figure 1: Factors affecting the respondent's decision to choose Chicken 'n' Burger over West

Central Mall.

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Figure 1 showcases Chicken 'n' Burger Delight's strengths: affordability (32%), menu variety

(20%), food quality (20%), promotions (20%), and location/atmosphere concerns (8%).

Question 14

In your opinion, what measures do you think Chicken ‘n’ Burger Delight could take to reduce

the impact of West Central Mall on their sales and profitability?

Response # of Responses

Relocating to another community 10

Offer new products to the menu 7
Train staff to be friendlier 5
Have greater promotions of the business 3
TOTAL 25

Table 2: Measure to improve

Figure 2: showing measures to improve sales at Chicken 'n' Burger Delight.

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Figure 2 shows strategies to counter West Central Mall's impact on Chicken 'n Burger Delight:

relocation (40%), menu expansion (28%), staff training (20%), promotions (12%).

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 SECONDARY DATA

2022 2023
Month Sales Gross Expenses Net Month Sales Gross Expens Net
Profit Profit Profit es Profit

August 560,000 440,000 240,000 200,00 August 580,000 440,000 210,00 230,00
0 0 0
September 580,000 450,000 210,000 240,00 September 540,000 420,000 200,00 220,00
0 0 0

October 540,000 420,000 200,000 220,00 October 500,000 400,000 210,00 190,00
0 0 0
November 580,000 440,000 210,000 230,00 November 440,000 300,000 200,00 100,00
0 0 0
December 640,000 460,000 250,000 210,00 December 500,000 380,000 240,00 140,00
0 0 0
TOTAL 2,900,000 2,210,000 1,110,000 1,100,0 TOTAL 2,560,000 1,940,000 1,060,0 880,00
00 00 0

Table 3: Sales and Profit Comparison for the 2 periods.

Table 3 illustrates sales trends from August to December 2022. Sales increased by $20,000 in

August but dropped by $40,000 in September due to the mall's opening, resulting in a $140,000

decline by December 2023.

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 CALCULATIONS 2022 2023
Mean Sales 2,900,000 = $580,000 2,560,000 = $512,000
5 5
Median Sales 540,000 $500,000
Mode Sales 580,000 500,000
Average Net Profit 1,100,00 = 220,000 = 880 000 = 176,000
5 5

Table 4: Calculation of the decline in both sales and net profit.

Table 4 shows notable declines in both sales and net profit between August-December 2022 and

2023. Mean sales decreased from $580,000 to $512,000, median sales from $540,000 to

$500,000, and mode sales from $580,000 to $500,000.

Figure 3: Comparison of total Sales for the 2 periods.

Figure 3, a pie chart, compares Chicken 'n Burger's total sales between 2022 and 2023: Sales

dropped from 53% ($2,900,000) to 47% ($2,560,000).

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 Figure 4: Net Profit comparison for the two periods.

Figure 4, a pie chart, contrasts Chicken 'n Burger's net profit between 2022 and 2023: In 2022,

net profit was 56% ($1,100,000), dropping to 44% ($880,000) in 2023.

— 12 —
 Figure 5: Comparison of sales for each month in the 2 periods

Figure 5 displays monthly sales changes from August to December 2023. Sales began at

$560,000 in August, peaked at $640,000 in December, but decreased to $500,000 by 2023.

— 13 —
 FINANCIAL DATA

Trial Balance

Chicken ‘n’ Burger Delight Chicken ‘n’ Burger Delight

Trial Balance Trial Balance
as at 31st December, 2022 as at 31st December, 2023
Date Details Debit Credit Date Details Debit Credit
2023 $ $ 2023 $ $
Dec 31st Capital 2,500,000 Dec 31st Capital 3,000,000
Cash 160,000 Cash 120,000
Bank 200,000 Bank 80,000
Premises 2,725,000 Premises 2,725,000
Motor Van 165,000 Motor Van 150,000
Sales 2,900,000 Sales 2,560,000
Loan 130,000 Loan 200,000
Purchases 720,000 Purchases 660,000
Return Outwards 32,000 Return Outwards 40,000
Return Inwards 10,000 Return Inwards 20,000
Drawings 50,000 Drawings 30,000
Rent and Rates 100,000 Rent and Rates 80,000
Insurance 220,000 Insurance 195,000
Wages 760,000 Wages 720,000
Motor Expenses 35,000 Motor Expenses 40,000
Accounts Payables 67,000 Accounts Payables 20,000
Accounts 40,000 Accounts 30,000
Receivables Receivables
Stock 30,000 Stock 100,000
Discount allowed 10,000 Discount allowed 10,000

Notes: (2022)
1. Closing Stock: 18,000
2. Depreciation on Motor Van: 10%
3. Rent & Rates owing: 20,000
4. Insurance (Prepaid): 40,000
Notes: (2023)
5. Closing Stock: 100,000
6. Depreciation on Motor Van: 10%
7. Insurance owing: 10,000
8. Rent & Rates (Prepaid): 10,000

— 14 —
 Income Statement
Chicken ‘n’ Burger Delight Chicken ‘n’ Burger Delight
Income Statement Income Statement
As at 31st December, 2022 As at 31st December, 2023

$ $ $ $ $ $
Sales 2,900,000 Sales 2,560,000
Add Return 10,000 Add Return 20,000
Inwards Inwards
Net Sales 2,910,000 Net Sales 2,580,000

Add Opening 30,000 Add Opening 100,000

Stock Stock
Purchases 720,000 Purchases 660,000
Less Return less Return 40,000
Outwards 32,000 Outwards
Net Purchases 688,000 Net Purchases 620,000
Cost of goods Cost of goods
available for sale 718,000 available for sale 720,000
less closing stock 18,000 less closing stock 80,000
Cost of goods 700,000 Cost of goods 640,000
sold sold
Gross Profit 2,210,000 Gross Profit 1,940,000
Less Expenses: Less Expenses:
Rent and Rates 100,000 Rent and Rates 80,000
Add Owings 20,000 120,000 Less Advance 10,000 70,000
Insurance 220,000 Insurance 195,000
Less prepayment 40,000 180,000 Add Owings 10,000 205,000
Wages 760,000 Wages 720,000
Motor Expenses 35,000 Motor Expenses 40,000
Discount Allowed 10,000 Discount Allowed 10,000
Depreciation for 15,000 Depreciation for
Motor Van Motor Van 15,000
Total expenses 1,110,000 Total expenses 1,060,000
Net profit 1,100,000 Net profit 880,000

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 Statement of Financial Position
Chicken ‘n’ Burger Delight Chicken ‘n’ Burger Delight
Statement of Financial Position Statement of Financial Position
As at 31st December,2023 As at 31st December,2023
COS DE NET COS DE NET
T P T P
$ $ $ $ $ $
Fixed Assets Fixed Assets
Premises 2,725,000 2,725,000 Premises 2,725,000 2,725,000
Motor Van 165,000 15,000 150,000 Motor Van 150,000 15,000 135,000
2,890,000 15,000 2,875,000 2,875,000 15,000 2,860,000

Current Assets Current Assets

Closing Stock 18,000 Closing Stock 100,000
Accounts Accounts 30,000
Receivables 40,000 Receivables 10,000
Rent and rates
Insurance advance 40,000 advance
Bank 200,000 Bank 80,000
Cash 160,000 Cash 120,000

Total current assets 458,000 Total current 340,000

assets
Less current
Less current liabilities
liabilities
Accounts Payables 67,000 Accounts 20,000
Payables
Loan(repayable in 130,000 Loan(repayable 200,000
6 months) in 6 months)
Rent and rates Insurance owing 10,000
owings 20,000
Total current Total current 230,000
liabilities 217,000 liabilities
Working capital 675,000 Working capital 110,000
3,550,000 2,970,000
Financed by Financed by
Capital 2,500,000 Capital 3,000,000

Add Net Profit 1,100,000 Add Net Profit 880,000

3.600,000 3.880,000

Less Drawings 50,000 Less Drawings 30,000

3,550,000 2,970,000

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 Ratios

Gross Profit to sales ratio.(2022) Gross Profit to sales ratio.(2023)

Gross Profit = 1,100,000 = 11:29 Gross Profit = 880,000 = 11:32

Sales 2,900,000 Sales 2,560,000

Gross Profit as a percentage of sales(2022) Gross Profit as a percentage of sales(2023)

Gross Profit *100= 880,000 . *100 = 37.9% Gross Profit *100= 880,000 *100 = 34.4%

Sales 2,560,000 Sales 2,560,000

Return on Capital employed ratio (2022) Return on Capital employed ratio ( 2023)

Net Profit = 1,100,000 = 11:25 Net Profit = 880,000 = 22:75

Capital employed 2,500,000 Capital employed 3,000,000

Return on Capital employed ratio as a percentage (2022) Return on Capital employed ratio as a percentage ( 2023)
Net Profit *100 = 1,100,000 = 44% Net Profit *100 = 880,000 = 29.3%
Capital employed 2,500,000 Capital employed 3,000,000

Current ratio (2022) Current ratio (2023)

Current Assets = 458,000 = 458:217 Current Assets = 340,000 = 34:23

Current liabilities 217,000 Current liabilities 230,000

Acid test ratio (2023) Acid test ratio (2023)

Current assets- = Current assets- =
stock 458,000 – 18,000 stock 340,000 – 100,000

current liabilities 217,000 current liabilities 230,000

= 440,000 = 440:217 = 240,000 = 24:23

217,000 230,000

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 Statement About The Business’ Performance Based On Ratios

The restaurant's Gross Profit to Sales Ratio improved from 11:29 in 2022 to 11:32 in 2023,

indicating enhanced profit generation efficiency.

The Return on Capital Employed Ratio also increased, reflecting improved profitability relative

to capital employed.

However, the decline in Current Ratio and Acid Test Ratio from 2022 to 2023 suggests potential

challenges in meeting short-term financial obligations, raising concerns about financial stability.

Further analysis is crucial for devising sustainable growth strategies.

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 ANALYSIS OF DATA

The study analyzed customer preferences between Chicken 'n' Burger Delight and West Central

Mall, using primary and secondary data from Leonora residents and financial data and interviews

with business stakeholders.

Firstly, an analysis was conducted on factors affecting customers' choice between Chicken 'n'

Burger Delight and West Central Mall. Notably, affordability, menu diversity, food quality, and

promotions were highlighted as significant factors, each garnering 20% in mean, mode, and

median. This indicates customers' balanced consideration of these attributes.

Secondly, respondents proposed diverse strategies to mitigate the mall's impact on Chicken 'n'

Burger Delight, as depicted in Figure 2. Remarkably, each suggested strategy received 25% in

mean, mode, and median, suggesting a balanced perception among respondents regarding their

effectiveness.

Thirdly, Between August and December 2022 and 2023, the restaurant experienced declines in

sales and profitability, with sales decreasing from $580,000 to $512,000 and net profit from

$220,000 to $176,000. However, financial ratios suggest improved profit generation, with Gross

Profit to Sales Ratios increasing and Return on Capital Employed Ratio rising significantly.

Additionally, pie charts comparing total sales and net profit between 2022 and 2023 visually

depicted the decline. Total sales dropped from 53% to 47%, while net profit decreased from 56%

to 44%. These visualizations underscore the significant decline in sales and profitability.

— 19 —
Lastly, monthly sales comparisons highlighted fluctuations. August 2022 showed an increase,

but subsequent months saw declines. November had the most significant drop, indicating

challenges for Chicken 'n' Burger Delight.

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 FINDINGS

1. Sales Declined: Chicken 'n' Burger Delight plummeted by $251,100 from 2022 to 2023,

possibly due to the West Central Mall's influence, prompting customers to seek

alternative dining options.

2. Profit Decrease: Net profit declined by $153,360 during the same period, highlighting the

challenges posed by heightened competition and evolving customer preferences.

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 CONCLUSION

The impact of West Central Mall on Chicken 'n' Burger Delight was examined using primary and

secondary data. Key factors affecting consumer decisions include promotions, menu diversity,

affordability, and food quality. Despite financial enhancements, the decline in revenue in 2022

and 2023 necessitates a comprehensive strategy. Continuous monitoring and adjustments are

vital to sustain competitiveness and consumer satisfaction.

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 RECOMMENDATION

1. Relocate: Move to a more accessible location within the village to increase visibility and

attract more locals.

2. Expand the menu: Introduce new food items to cater to a wider range of customer

preferences.

3. Enhance staff training: Invest in employee development to improve service quality.

4. Increase promotional activities: Boost marketing efforts to raise brand awareness and

attract more customers.

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 BIBLIOGRAPHY

➔ Chicken N Burger Delight. (n.d.). Retrieved January 07, 2023 from

https://cnbd.business.site

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