Quote:
Originally Posted by augie_
"So you're telling me you sold how many pancakes? And they ALL paid cash??"
It's the other way round. The restaurant claims they sold only X pancakes and almost no customer paid cash.
The IRS checks how many bottles of maple syrup they bought from Costco and based on that number, they find out that the restaurant probably sold amount 2x pancakes and half the customers paid cash. Not good.
Quote:
Originally Posted by Da_Nit
I totally agree but something doesn't add up.
Totally possible there are other reasons.
Another thing that's hard to see from the outside: opening and operating a restaurant is very cash intensive. That fact, combined with the high number of restaurants that fail, results in high interest rates if a restaurant owner takes out a loan.
Recently I calculated the numbers for someone who wants to build a brewpub. He wasn't super happy when I told him that even in one of the more favorable scenarios, he'd work the first 3 weeks of the month just to pay back interest.