Financial Statements
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Financial Statements:
Kindly use the following questions as guidelines to your assigned case study:
- What challenges does Shelby Givens face:
- During Phase I (Preparing for the Transformation)
- During Phase II (Renovation and Grand Opening)
- During Phase III (2011/2012 Operations)
- By the end of the case, what has Givens done to address the challenges outlined at each stage listed in Question (1) above?
- Which of the actions executed by Givens were most successful in resolving the challenges? Which were least successful? What other options might Givens have pursued?
- Is Sugar Bowl a viable business? Which forces have the most positive, or negative, impact on the business’s profitability?
- Givens considers two paths for Wednesday night entertainment: league bowling and exclusive band rights.
- Which option will generate more revenue in the short term? Long term?
- Is revenue how success should be measured? Which path do you think is best for Sugar Bowl, and why?
- Once Sugar Bowl’s financials are more stable, what changes could Givens make to build a stronger organization and culture?
Financial Statements
EX 1 – Balance Sheet
| Balance Sheet |
| December 31, 2006-2012 |
2006 |
2007 |
2008 |
2009 |
2010 |
2011 |
| ASSETS |
| Current Assets |
| Cash |
$ 35,488 |
$ 24,473 |
$ 29,667 |
$ 9,057 |
$ 298,806 |
$ 66,594 |
| Inventory |
$ 15,412 |
$ 6,571 |
$ 2,943 |
$ 4,200 |
$ 24,005 |
$ 83,950 |
| Fixed Assets |
| Property, Plant & Equipment |
$ 54,007 |
$ 132,103 |
$ 184,122 |
$ 178,046 |
$ 408,500 |
$ 658,962 |
| Total Assets |
$ 104,907 |
$ 163,147 |
$ 216,732 |
$ 191,303 |
$ 731,311 |
$ 809,506 |
| LIABILITIES |
| Accounts Payable |
$ 14,907 |
$ 15,000 |
$ 25,000 |
$ 30,000 |
$ 25,488 |
$ 51,995 |
| Debt |
$ 40,000 |
$ 121,567 |
$ 94,850 |
$ 124,208 |
$ 724,208 |
$ 724,208 |
| Total Liabilities |
$ 54,907 |
$ 136,567 |
$ 119,850 |
$ 154,208 |
$ 749,696 |
$ 776,203 |
| EQUITY |
| Common Stock |
$ 30,000 |
$ 30,000 |
$ 130,000 |
$ 130,000 |
$ 130,000 |
$ 130,000 |
| Retained Earnings |
$ 20,000 |
$ (3,420) |
$ (33,118) |
$ (92,905) |
$ (160,490) |
$ (96,697) |
| Total Equity |
$ 50,000 |
$ 26,580 |
$ 96,882 |
$ 37,095 |
$ (30,490) |
$ 33,303 |
Ex 2 – Income Stmt.
| INCOME STATEMENT |
QUARTERLY |
|
|
|
|
ANNUAL |
|
Westlake |
Sugar Bowl |
Sugar Bowl |
Sugar Bowl |
Sugar Bowl |
Westlake |
Sugar Bowl |
|
Q3 2010 |
Q2 2011* |
Q3 2011 |
Q4 2011 |
Q1 2012 |
2010 |
2011 |
| Income |
| Lane Rental |
$ 118,290 |
$ 106,707 |
$ 179,021 |
$ 275,400 |
$ 267,540 |
$ 398,850 |
$ 561,128 |
| Food Sale |
$ 17,150 |
$ 70,392 |
$ 159,667 |
$ 448,500 |
$ 410,270 |
$ 56,920 |
$ 678,559 |
| Liquor Sale |
$ 20,571 |
$ 99,460 |
$ 243,763 |
$ 559,270 |
$ 501,550 |
$ 69,890 |
$ 902,493 |
| Total |
$ 156,011 |
$ 276,559 |
$ 582,451 |
$ 1,283,170 |
$ 1,179,360 |
$ 525,660 |
$ 2,142,180 |
| Variable Cost of Sales |
| Food Purchased |
$ 5,145 |
$ 39,420 |
$ 110,250 |
$ 181,386 |
$ 199,336 |
$ 17,076 |
$ 331,056 |
| Liquor Purchased |
$ 4,114 |
$ 29,838 |
$ 105,000 |
$ 249,530 |
$ 201,600 |
$ 13,978 |
$ 384,368 |
| Food & Beverage Supplies |
$ 3,772 |
$ 35,953 |
$ 129,157 |
$ 114,500 |
$ 147,011 |
$ 12,681 |
$ 279,610 |
| Total |
$ 13,031 |
$ 105,210 |
$ 344,407 |
$ 545,416 |
$ 547,946 |
$ 43,735 |
$ 995,033 |
| General Overhead Expenses |
| Marketing and Advertising |
$ 2,820 |
$ 10,000 |
$ 15,000 |
$ 15,000 |
$ 15,000 |
$ 9,250 |
$ 40,000 |
| Salaries: Full Time |
$ 29,400 |
$ 48,498 |
$ 48,498 |
$ 48,498 |
$ 48,498 |
$ 115,000 |
$ 145,494 |
| Salaries: Part Time |
$ 9,240 |
$ 20,130 |
$ 18,720 |
$ 34,528 |
$ 23,900 |
$ 30,800 |
$ 73,378 |
| Catering wage |
n/a |
$ 16,128 |
$ 25,920 |
$ 32,027 |
$ 25,920 |
|
$ 74,075 |
| Coupons |
$ 2,339 |
$ 7,000 |
$ 9,000 |
$ 11,000 |
$ 9,000 |
$ 7,090 |
$ 27,000 |
| Legal and Audit |
$ 2,112 |
$ 3,600 |
$ 3,600 |
$ 3,600 |
$ 3,600 |
$ 7,040 |
$ 10,800 |
| License & Permits |
$ 440 |
$ 2,475 |
$ 2,475 |
$ 6,000 |
$ 6,000 |
$ 6,500 |
$ 10,950 |
| Office Supplies |
$ 794 |
$ 1,950 |
$ 3,450 |
$ 5,450 |
$ 3,450 |
$ 2,740 |
$ 10,850 |
| Rent |
$ 26,949 |
$ 43,000 |
$ 43,000 |
$ 43,000 |
$ 43,000 |
$ 89,830 |
$ 129,000 |
| Repair & Maintenance Labor |
$ 13,838 |
$ 14,000 |
$ 29,550 |
$ 34,550 |
$ 29,550 |
$ 102,700 |
$ 78,100 |
| Repair & Maintenance Supplies |
$ 24,855 |
$ 45,000 |
$ 49,000 |
$ 58,000 |
$ 63,000 |
$ 67,500 |
$ 152,000 |
| Utilities |
$ 7,131 |
$ 15,000 |
$ 26,100 |
$ 24,040 |
$ 23,520 |
$ 27,560 |
$ 65,140 |
| Travel & Promotion |
$ 263 |
$ 8,000 |
$ 3,000 |
$ 3,000 |
$ 3,000 |
$ – 0 |
$ 14,000 |
| Insurance |
$ 14,700 |
$ 28,500 |
$ 28,500 |
$ 33,000 |
$ 33,000 |
$ 49,000 |
$ 90,000 |
| Miscellaneous |
$ 450 |
$ 6,000 |
$ 8,500 |
$ 7,500 |
$ 9,700 |
$ 1,500 |
$ 22,000 |
| Total General |
$ 135,329 |
$ 269,281 |
$ 314,313 |
$ 359,193 |
$ 340,138 |
$ 516,510 |
$ 942,787 |
| Operating Income (Loss) |
$ 7,651 |
$ (97,932) |
$ (76,269) |
$ 378,561 |
$ 291,276 |
$ (34,585) |
$ 204,360 |
| Interest payment: Bank |
$ 1,897 |
$ 8,000 |
$ 8,000 |
$ 8,000 |
$ 8,000 |
$ 16,000 |
$ 32,000 |
| Interest payment: Friends & Family |
|
$ 4,000.00 |
$ 4,000.00 |
$ 4,000.00 |
$ 4,000.00 |
$ 8,000 |
$ 16,000 |
| Depreciation |
$ 2,100 |
$ 3,000 |
$ 3,000 |
$ 3,000 |
$ 3,000 |
$ 9,000 |
$ 14,000 |
| Tax |
$ 2,678 |
|
|
$ 132,496 |
$ 101,946 |
|
$ 78,566 |
| Net Income |
$ 4,973 |
$ (112,932) |
$ (91,269) |
$ 231,065 |
$ 174,329 |
$ (67,585) |
$ 63,793 |
| *Q2 2011 represents just 8 weeks of Sugar Bowl Operations. Note the facility closed for renovations in November 2010, |
| and reopened in early May 2011. |
Ex 3 – Marketing Campaign
| Summer 2011: Test Marketing Campaigns |
|
|
# Potential |
# Actual |
Repeat Customers |
Cost Per |
Cost per Repeat |
| Channel |
Campaign Cost |
customers reached |
customers delivered |
Generated |
Customer |
Customer |
| Direct Email to Sugar Bowl Email List |
$50 |
400.00 |
30.00 |
16.00 |
$ 1.67 |
$ 3.13 |
| Direct Email to Rented Target Email List |
$4,000 |
4,000.00 |
80.00 |
30.00 |
$ 50.00 |
$ 133.33 |
| Group Buying Offer |
$2000 + 30% of sales |
5,000.00 |
500.00 |
125.00 |
$ 11.50 |
$ 46.00 |
| Social Media Website |
$0.75 per click |
1,000.00 |
120.00 |
12.00 |
$ 6.25 |
$ 62.50 |
| Keyword Search |
$1.10 per click |
500.00 |
35.00 |
20.00 |
$ 15.71 |
$ 27.50 |
Ex 4-Weekly Attendance Snapshot
| Weekly Attendance Snapshot * |
| *Does not include Private Event patronage |
|
|
|
|
|
|
|
|
Average $ |
| 2011 |
Monday |
Tuesday |
Wed. |
Thursday |
Friday |
Saturday |
Sunday |
Weekly |
Per Person |
| Q2 |
67 |
59 |
75 |
154 |
160 |
180 |
124 |
819 |
$ 35.00 |
| Q3 |
67 |
59 |
75 |
200 |
215 |
220 |
172 |
1008 |
$ 40.00 |
| Q4 |
75 |
94 |
190 |
308 |
350 |
385 |
299 |
1701 |
$ 50.00 |
| 2012 |
Monday |
Tuesday |
Wed. |
Thursday |
Friday |
Saturday |
Sunday |
Weekly |
| Q1 |
101 |
125 |
120 |
378 |
411 |
420 |
335 |
1890 |
$ 52.00 |
