Bates Boatyard
Table of Contents Facts | ………………………………………………………………………………… | 2 | Analysis | ………………………………………………………………………………… | 2 | Conclusions References | …………………………………………………………………………………………………………………………………………………………………… | 56 |
Issues 1. a. What would you tell Bates concerning her accounting needs, emphasizing the uses of the accounting information for all stakeholders within and without the business? 2. a. The boatyard operates how many businesses? b. What are the accounting information needs for managing these businesses?
Facts
Sarah Bates a returning Navy civilian decides to buy a business with the money she has saved along all this time. Bates buys a small boatyard in a town on the coast of Maine where she had spent many summers. The business being somewhat larger than she could finance alone, she had borrowed the additional funds required from a friend, giving a mortgage on the property as security. Along this way she realized she needs adequate accounting records. The records on hand were for cash receipts and disbursement only, as well actual balance sheet and profit and loss statement. Bates did not have any background on accounting therefore she finds helps from a friend of her, who advice her on what kind of accounting records should be kept and what kind of financial and cost information should be developed to control operations and to make proper charges to customers for services rendered. Some of the facts of the business are, one of the properties was a large shed for the winter storage of boats. Since the place was very suitable for larger boats there was a great demand for the space in it on the part of owners of expensive boats among the summer people. Also there was plenty of empty land on the shore front outdoor storage, the space was rented and also hired to haul the boats in equipment that it had for the purpose. During spring and other seasons there was a lot of business in painting and repair work for boats. Also she had
Issues 1. a. What would you tell Bates concerning her accounting needs, emphasizing the uses of the accounting information for all stakeholders within and without the business? 2. a. The boatyard operates how many businesses? b. What are the accounting information needs for managing these businesses?
Facts
Sarah Bates a returning Navy civilian decides to buy a business with the money she has saved along all this time. Bates buys a small boatyard in a town on the coast of Maine where she had spent many summers. The business being somewhat larger than she could finance alone, she had borrowed the additional funds required from a friend, giving a mortgage on the property as security. Along this way she realized she needs adequate accounting records. The records on hand were for cash receipts and disbursement only, as well actual balance sheet and profit and loss statement. Bates did not have any background on accounting therefore she finds helps from a friend of her, who advice her on what kind of accounting records should be kept and what kind of financial and cost information should be developed to control operations and to make proper charges to customers for services rendered. Some of the facts of the business are, one of the properties was a large shed for the winter storage of boats. Since the place was very suitable for larger boats there was a great demand for the space in it on the part of owners of expensive boats among the summer people. Also there was plenty of empty land on the shore front outdoor storage, the space was rented and also hired to haul the boats in equipment that it had for the purpose. During spring and other seasons there was a lot of business in painting and repair work for boats. Also she had