Dak, Inc. - Page 8

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          Testimony of Kenneth R. Chiate                                              
               Mr. Chiate is president and sole shareholder of Moonshadows.           
          He described the restaurant and how it operated.  There is a bar            
          in Moonshadows that seats between 40 to 50 people.  There is a              
          cash register in the bar (register 2).  That register would ring            
          up drinks ordered by bar patrons.                                           
               If a patron were to leave the bar and go to the dining room            
          for a meal, the bar ticket would follow the patron from the bar             
          to the dining room.  There was a cash register in the dining room           
          (register 1).  The server would then serve the patron his meal at           
          the dinner table.  If he wanted another drink during his meal,              
          the server would go back to the bar with the patron’s bar ticket            
          and the bartender would add the drink to the bar ticket.  The               
          server would retain possession of the bar ticket.  At the end of            
          the meal, the server would add up the amount of the patron’s                
          dinner ticket and his bar ticket to compute the total owed by the           
          patron for his meal and drinks.                                             
               Mr. Chiate testified that you cannot determine the total               
          sales of the restaurant by adding up the dinner and bar cash                
          register tapes because there would be “double-ups”, i.e., the               
          same charge for a drink would appear on the bar cash register               
          tape and the dining room cash register tape.                                
               Respondent asked Mr. Chiate if it were not true that you               
          could look at the cash register tapes from the bar and determine            

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Last modified: May 25, 2011