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Published by:
Ivey Publishing (2019)
Version:
2019-12-18
Revision date:
16-Jan-2020
Length:
6 pages
Data source:
Field research

Abstract

In 2018, the owner of Northwest Fitness, a fitness business in London, Ontario, Canada, was analyzing the business's past year of operations and planning for the future. The company focused on 'functional fitness' training to help clients improve aspects of their everyday life. The owner had launched the fitness studio with the help of a bank loan and a line of credit; after three years of success, he wondered if the company was finally in a financial position that would allow him to expand operations. He needed to analyze the past financial performance and project a statement of earnings and a statement of position assuming an expansion was pursued.

Teaching and learning

This item is suitable for undergraduate courses.

Topics

Management accounting; Projected statements; Ratio analysis; Statement of cash flows analysis; Historical financial performance; Business expansion; Health and fitness industry; Accounting; Entrepreneurship
Location:
Size:
Small
Other setting(s):
2018

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