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Created by Stephanie Gruwell and Greg Clinton

Wide-Eyed Joe's

The Coffee Shop Cash Management WebQuest

This page last updated on October 4, 2010 .

Overview

Your Uncle Joey Bean has talked you into coming to work at his coffee shop and bakery, Wide Eyed Joe's. He needs someone who can look at his accounts and finances and make some recommendations to improve his cash flow. Uncle Joey has had a bookkeeper until now, and since you have no job, this is the perfect opportunity to help out your uncle, considering he paid for your college education with the official "Bean Scholarship". He realizes that you don't have a lot of experience, but he is willing to give you some time to conduct some research before making any decisions. He is very supportive of your investigation into the basics of cash management.

Business Information

Wide Eyed Joe's has been in business for 10 years and has a prime location in the center of town. The coffee shop started out as a very small business but expanded over the years to include a bakery. The larger store has become a place where people gather for special coffee and light meals. Uncle Joey is famous for a special concoction that only he knows how to make. People drive from surrounding towns to sample his specialty drink. In addition, the bakery has developed quite a reputation for their delicious desserts. One of the main reasons that the business has grown so much in the last three years is that restaurants have begun to purchase their breads and desserts from Wide Eyed Joe's.

Recently, the tenants in the building next door decided to sell. The open space has provided an opportunity to expand their wholesale bakery business. Because the community has experienced a lot of development in the last few years, you and your Uncle Joey have an opportunity to significantly grow this part of the business. As the new cash manager, you will need to make a decision on if you can afford purchase the building and if so, how you will make that happen.

Until recently, the business has run pretty smoothly. Uncle Joey told you that his bookkeeper left under suspicious circumstances and that it had something to do with the cash management of Wide Eyed Joe's.

All of the financial information you need is contained in notebooks, ledgers and post-it notes. The checks are kept in a drawer in the office. The coffee shop and bakery accept cash and checks only. There was an issue with some missing checks after the bookkeeper was fired.         

Right now Joe orders coffee beans and bakery supplies on a 30-day basis. These food supplies stay in inventory until they are reordered. Some coffee beans are thrown out because they are stale. Your vendors are trying to get you to order more frequently and in smaller amounts so that your food items stay fresh. Unfortunately, you don't have enough cash to pay them on a monthly basis.

There are 7 restaurants that get all of their bread and desserts from Joe. They make weekly purchases and have up to 60 days to pay on their account. There is 1 restaurant that purchases "desserts only" and they have the same terms. There are no discounts given, you already offer a great price so why give them a discount? Over the years, Joe has become good friends with everyone. He has had some difficulty in collecting from one of his high school sweethearts that runs a lunch counter uptown. She owes him money for the last 6 months. Joe has given her a break because he knows she is trying to get her business through this rough spot.

The coffee shop and bakery are a fun place to work. There are 7 people who work in the coffee shop and 5 who work in the bakery. Reggie and Ginny are your managers and they have both been with Uncle Joey since Wide Eyed Joe's opened.