Bates Boatyard Case Study

2337 WordsMay 28, 201410 Pages
FACULTY : FACULTY OF ACCOUNTANCY PROGRAM : MASTER OF ACCOUNTANCY COURSE: MANAGEMENT CONTROL AND DECISION MAKING COURSE CODE : MAC 700 Case Study 1 BATES BOATYARD Upon returning to civilian life after several years in the Navy, Sarah Bates sought a small business that she might buy. Being a thrifty person with no dependents, she had built up a fair amount of savings, the accumulation of which had been aided by the fact that she had seen considerable duty in areas where there had been nothing to buy. Bates finally located a small boatyard for sale in a town on the coast of Maine where she had spent many summers. The proprietor was getting along in years and wished to retire. He was offering the yard for sale at what Bates believed…show more content…
QUESTION What would you tell Bates concerning her accounting needs? TOTAL 7.5 Marks Case Study 2 LIFE PROTECTION PRODUCTS (LPP) In order to better serve their rural patients, Drs. Dan and Jack Fleming (brothers) began giving safety seminars. Especially popular were their “emergency-preparedness” talks given to farmers. Many people asked whether the “kit” of materials the doctors recommended for common farm emergencies was commercially available. After checking with several suppliers, the doctors realized that no other company offered the supplies they recommended in their seminars, packaged in the way they described. Their wives, Julie and Amy, agreed to make a test package by ordering supplies from various medical supply companies and assembling them into a “kit” that could be sold at seminars. When these kits proved a runaway success, the sisters-in-law decided to market them. At the advice of their accountant, they organized this venture as a separate company, called Life Protection Products (LPP), with Julie Fleming as CEO and Amy Fleming as Secretary-Treasurer. LPP soon started receiving requests for the kits from all over the country, as word spread about their availability. Even without advertising, LPP was able to sell its full inventory every month. However, the company was becoming financially strained. Julie and Amy had about $100,000 in savings, and they invested about half that amount

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