Bates Boatyard
I. SUMMARY
Owning a boat yard is indeed a great challenge to Sarah Bates. In Bates case she was able to buy a boat yard with a lot of stunning opportunities to offer. The properties of the business were a large sheet for the winter storage of boats. There was plenty of empty land on the shore for outdoor storage. The yard can also be hired for hauling. In the spring and time to time during other seasons, there was a good amount of business available for painting and repair works on boat. There was a large-sized work shed containing woodworking tools and space in which to construct about six boats up to 40 feet in length at one time. The property included a good-sized wharf and float, a store for the sale of marine hardware and supplies, and gasoline pumps.
II. PROBLEM
There is a high level of business opportunity to manage
There was a high level of uncertainty of what kind of accounting records or financial system should Sarah Bates kept
What kind of financial and cost information should be developed to control operations and to make proper charges to customers for services rendered
III. ANALYSIS OF ALTERNATIVES
Bates possible business and services could offer:
Dockage and Vessel services
Equipment Rentals
Boats Haul-out
Marina Fuel
Lease and Rental services
Marine and Hardware Supplies
Four important financial statements should be kept.
Person who has specialties in maintaining accounting records should be hired.
IV. RECOMMENDATION
Subsidiaries should be maintained in every business to be pursued for monitoring of its operation.
This is to maintain specific record and maintain specific report on the income and cost of each operation and services rendered.
Its purpose is also to identify