In some business models, like restaurants, revenue determines expenses. For example, a restaurant owner may find that labor and food costs should each be 30% of total revenue for the business model to work. As you run your business over time, you’ll see certain patterns and limitations (e.g. cafes only have a certain number of seats) — patterns in revenue to determine expenses.
Please review and analyze the Financial Statement Model and explain each component in Dark Blue Such as % Growth per month, Revenue, Expenses, Operating Cash Flow, etc. Please review the Sample Financial Statement as a reference.
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