Premium Essay

Private Fitness

In: Business and Management

Submitted By binraechoi
Words 24103
Pages 97
Glossary oF Accounting, Finance and Economic Terms Accounting – pages 1‐7 and 8 Finance – page 7 Economics – page 7 ACCOUNTING: http://www.alpineguild.com/glossary_of_important.htm
Account ‐‐ a record of financial transactions; usually refers to a specific category or type, such as travel expense account or purchase account. Accountant ‐‐ a person who trained to prepare and maintain financial records. Accounting ‐‐ a system for keeping score in business, using dollars. Accounting period ‐‐ the period of time over which profits are calculated. Normal accounting periods are months, quarters, and years (fiscal or calendar). Accounts payable ‐‐ amounts owed by the company for the goods or services it has purchased from outside suppliers. Accounts receivable ‐‐ amounts owed to the company by its customers. Accrual basis, system, or method ‐‐ an accounting system that records revenues and expenses at the time the transaction occurs, not at the time cash changes hands. If you buy a coat and charge it, the store records or accrues the sale when you walk out with the coat, not when you pay your bill. Cash basis accounting is used by individuals. Accrual basis accounting is used by most businesses. Accrued expenses, accruals ‐‐ an expense which has been incurred but not yet paid for. Salaries are a good example. Employees earn or accrue salaries each hour they work. The salaries continue to accrue until payday when the accrued expense of the salaries is eliminated. Aging ‐‐ a process where accounts receivable are sorted out by age (typically current, 30 to 60 days old, 60 to 120 days old, and so on.) Aging permits collection efforts to focus on accounts that are long overdue.

1

Amortize ‐‐ to charge a regular portion of an expenditure over a fixed period of time. For example if something cost $100 and is to be amortized over ten...

Similar Documents

Premium Essay

Private Fitness

...Action Controls As a small newly established fitness business, Private Fitness Inc. offers too many fitness choices to its clients – 10 in total. Some of them are overlapped. It results in some of the classes are quite popular, but many of them are not and has to be canceled for lack of clients. With only 3 exercising rooms, Private Fitness should use its limited rooms and facilities more efficiently. Find out the reasons of the cancelled...

Words: 871 - Pages: 4

Premium Essay

Private Fitness Llc

...Case 15-1: Private Fitness LLC* Private Fitness LLC is a springboard case that can be used as the basis of a discussion of management's need for information. It serves the same purpose for Part 2 of the book that the Kim Fuller case did for Part 1. Approach This case uses a small business as its setting so that students can visualize the business's activities, and so questions of generally accepted accounting principles will be essentially irrelevant. In fact, a shift the student needs to make as he/she begins Part 2 of the book is to think of accounting primarily in terms of its usefulness to a company's management, rather than in terms of reporting to shareholders and other outside parties. Because of the differing focus of Part 1 of the book, particularly the later chapters, some students will forget that they are dealing here with information for an apparently unsophisticated manager to help her run a small business, and not data for a NYSE company. This case is compelling both because students understand the business—fitness-training—and because there is a real problem to discuss. A trusted employee was both stealing cash and, by not recording all sales, diverting some revenues to herself....

Words: 1074 - Pages: 5

Free Essay

Private Fitness Llc

...PRIVATE FITNESS, LLC Background/Issues and Concern: • Acts of Kate with regards to the theft • Rosemary and Kate are long-time friend • Rosemary wanted to increase her standard of hiring by capitalizing on her reputation and knowledge in the growing fitness field and to have more time to spend with her two young children • Rosemary wants to protect her assets Problem Statement: How should Rosemary address her prolem with regards to the situation with Kate as well as in protecting her assets? Point of View: Rosemary Worth, the owner of the Private Fitness, LLC Objectives: 1. to strengthen the controls of the business 2. to eliminate theft and any other kind of fraud which can harm the entity 3. to operate and earn revenues effectively and efficiently Areas of Consideration: 1. The market of their business 2. The acts of Kate 3. The goal of Rosemary 4. Protection of assets 5. Rosemary’s situation Alternative Courses of Action: 1. Fire Kate and hire one of the remaining instructors as a manager Advantages: • Possible thief will be reduced • Kate can no longer steal from the business Disadvantages: • Chance of Kate of proving that she can change and be a faithful employee would be lost • The new assigned instructor as manager might do the same 2....

Words: 398 - Pages: 2

Premium Essay

Private Fitness Llc

...Background/Issues and Concern Rosemary Worth was talking about the consequences of a theft that had recently occurred at the business she owned, Private Fitness, LLC. Private Fitness is a small health club located in Rancho Palos Verdes, California, an upscale community located in the Los Angeles Area. As manager of the business, Rosemary hired Kate Hoffman, one of the instructors and a long-time friend. Kate’s primary tasks included marketing, facility upkeep, scheduling of appointments, and record keeping.   II. Problem Statement What should be the procedures or controls that Rosemary could use to protect her business’s assets? III. Point of View There is an existing employee fraud in the company done by Kate, who is a long-time friend and at the same time, valuable instructor and marketer. Since this is a serious offense made by Kate, a better control is needed to avoid incidents like these. Another thing is the company is not yet stable when it comes to policies/regulations. Proper segregation or delegation of duties must be done. Only one person is designed to do the recording of revenues and receiving of cash which is Kate. That’s the reason why Kate can have the opportunity to conceal fraud.   IV. Objectives       Specifically, the objectives of the study are the following:   1. To ensure that revenues are all recorded;   2. To make sure cash and cash in bank be equal to revenue recorded; and   3....

Words: 306 - Pages: 2

Premium Essay

Case Study - Private Fitness

...Case 3 – Private Fitness, Inc. Private Fitness, owned by Rosemary Worth is a very good example to show the consequences of lack of internal control procedures. The two major problems she is facing are: I. Protecting business revenue and assets even without her presence. a. No proper recording of revenues and operating expenditures b. No scheduling system for instructors or employees c. Payroll system doesn’t exist d. Limited funds II. To decide what to do with Kate. Following the Controls or the procedures that are briefly explained as follows can solve the first problem of protecting business revenue and assets even without her presence. 1. Maintenance of carbon copy receipt forms, three parts for: * Client – whether customer will take it or not * Instructor – for evaluation of commission * Office – accounting and book keeping aspect 2. Controlling access to cash by limiting access and using a drop safe and access should not be given to the instructors. 3. Provide computer security by including password protection, limited access, and room security. 4. Rosemary needs to personally supervise daily operation and keep account records or hire an accountant. 5. Eliminating unnecessary office supplies and unused services. The second problem of keeping Kate on staff or not? It can be answered by the following facts....

Words: 268 - Pages: 2

Premium Essay

Case Analysis on Private Fitness

...Case 15-1: Private Fitness LLC* Private Fitness LLC is a springboard case that can be used as the basis of a discussion of management's need for information. It serves the same purpose for Part 2 of the book that the Kim Fuller case did for Part 1. Approach This case uses a small business as its setting so that students can visualize the business's activities, and so questions of generally accepted accounting principles will be essentially irrelevant. In fact, a shift the student needs to make as he/she begins Part 2 of the book is to think of accounting primarily in terms of its usefulness to a company's management, rather than in terms of reporting to shareholders and other outside parties. Because of the differing focus of Part 1 of the book, particularly the later chapters, some students will forget that they are dealing here with information for an apparently unsophisticated manager to help her run a small business, and not data for a NYSE company. This case is compelling both because students understand the business—fitness-training—and because there is a real problem to discuss. A trusted employee was both stealing cash and, by not recording all sales, diverting some revenues to herself....

Words: 333 - Pages: 2

Premium Essay

Private Fitness Inc. Case

...Action Controls As a small newly established fitness business, Private Fitness Inc. offers too many fitness choices to its clients – 10 in total. Some of them are overlapped. It results in some of...

Words: 910 - Pages: 4

Premium Essay

Private Fitness Llc Case Study

...CASE STUDY: PRIVATE FITNESS, LLC I-Summary Private Fitness, LLC a private fitness owned by Rosemary Worth, a small health club which is located in Rancho Palos Verdes, California- an upscale community located in Los Angeles area. The services offered by the club were personal fitness training and fitness classes of various types including aerobics, spinning, body sculpting, air boxing, kickboxing, hip hop, step and pump, dynamic stretch, Pilates and yoga. Private Fitness LLC Rate for services offered: Services Offered Rate per hour Personal training client’s $ 50/hr Prime Time (5:30-9:00 am & 4:00-9:00 pm) $ 50/hr Lean Time (9:00 am-4:00pm) $ 35/hr Students $ 12/hr Discounts for prepayments Private Fitness LLC established in the motivation and inspiration of Rosemary Worth as a former finalist in Ms. Fitness USA competition and since she was an aerobics instructor she decided to start her own Private Fitness by using her personal savings plus a bank loan in order to renovate the facility of her club and acquire necessary fitness equipments by spending $150,000. Rosemary herself ran most the spinning classes and some aerobics classes. Also she contracted with five instructors. The instructors were paid on commission which ranged, between 20% and 50% of revenue. She also hired Kate Hoffman, one of the instructors and long-time friend....

Words: 1136 - Pages: 5

Premium Essay

Case Analysis on Private Fitness, Llc

...Background/Issues and Concern Rosemary Worth was talking about the consequences of a theft that had recently occurred at the business she owned, Private Fitness, LLC. Private Fitness is a small health club located in Rancho Palos Verdes, California, an upscale community located in the Los Angeles Area. As manager of the business, Rosemary hired Kate Hoffman, one of the instructors and a long-time friend. Kate’s primary tasks included marketing, facility upkeep, scheduling of appointments, and record keeping. II. Problem Statement What should be the procedures or controls that Rosemary could use to protect her business’s assets? III. Point of View There is an existing employee fraud in the company done by Kate, who is a long-time friend and at the same time, valuable instructor and marketer. Since this is a serious offense made by Kate, a better control is needed to avoid incidents like these. Another thing is the company is not yet stable when it comes to policies/regulations. Proper segregation or delegation of duties must be done. Only one person is designed to do the recording of revenues and receiving of cash which is Kate. That’s the reason why Kate can have the opportunity to conceal fraud. IV. Objectives Specifically, the objectives of the study are the following: 1. To ensure that revenues are all recorded; 2. To make sure cash and cash in bank be equal to revenue recorded; and 3....

Words: 282 - Pages: 2

Premium Essay

Case 15-1: Private Fitness Llc*

...It is not easy to become a corporate company. When entrepreneurs like Rosemary enters the market with limited sources, the very important thing is to create a team. The team members should be professional of their business in accordance with the jobs that they are doing. Rosemary is an instructor and she also hired 5 instructors to run the classes and training sessions. It is very suitable to hire instructors for training. And training is also a field that Rosemary has experience. Apart from them, she hired Kate Hoffman who also has an instructor experience and a close friend of her. Rosemary has given the marketing, facility up keep, scheduling and record keeping responsibilities to her. Although Kate has no experience on those specialized fields, Rosemary also has a limited knowledge about those tasks. It is very dangerous for a manager to give disproportionate responsibilities to the employees. If as a manager or company owner, you are not an expert on the marketing, accounting, human resources and other department’s functions, it is a good idea to hire professionals or receive consultancy. To run a company, it is not only enough to know the technical functionalities. The company should at least have a trustable accountant and cash handler in order to control the money flow. Since Rosemary is not an accountant it is very easy for her to lose the control about the company records. It is very clear that Kate is telling lie to Rosemary and unfortunately she has no records...

Words: 531 - Pages: 3

Premium Essay

Asdasd

...* Skip to Navigation * Skip to Content TermPaperWarehouse.com - Free Term Papers, Essays and Research Documents The Research Paper Factory * Join * Search * Browse * Saved Papers ------------------------------------------------- Top of Form Search Bottom of Form * Home page » * Business and Management Private Fitness Llc In: Business and Management Private Fitness Llc PRIVATE FITNESS, LLC Background/Issues and Concern: • Acts of Kate with regards to the theft • Rosemary and Kate are long-time friend • Rosemary wanted to increase her standard of hiring by capitalizing on her reputation and knowledge in the growing fitness field and to have more time to spend with her two young children • Rosemary wants to protect her assets Problem Statement: How should Rosemary address her prolem with regards to the situation with Kate as well as in protecting her assets? Point of View: Rosemary Worth, the owner of the Private Fitness, LLC Objectives: 1. to strengthen the controls of the business 2. to eliminate theft and any other kind of fraud which can harm the entity 3. to operate and earn revenues effectively and efficiently Areas of Consideration: 1. The market of their business 2. The acts of Kate 3. The goal of Rosemary 4. Protection of assets 5. Rosemary’s situation Alternative Courses of Action: 1....

Words: 512 - Pages: 3

Premium Essay

Organisational Behaviour

...Findings of each article According to the research by MacIntosh & Doherty (2007), in a fitness industry organizational culture plays a major role for the client satisfaction and also in retaining them. Though the corporate values such as performance, peak attitude and fitness plays a major role in a fitness industry, the most significant value is the integrity of an organization with respect to the client’s perspective (MacIntosh & Doherty, 2005). Integrity of an organization is that it will do what it says enhancing client satisfaction and will help in keeping the clients for long time. Though performance is considered to be the major value in an organization culture, according to the findings of this article, it is perceived that it has less significance with that of client satisfaction. It may be an initial attraction for a client to join a fitness organization, but in order to retain them the attitude of the staff towards the client has a greater impart in client satisfaction and retention (McCarthy 2004). The client perception and the staff perception of organization culture have some variations which are expected (Hatch & Schultz, 1997). Organizational culture can be designed by corporate leaders, and reinforced among members, through modeling, recognizing and rewarding desirable behavior (Schein, 1992)....

Words: 1768 - Pages: 8

Premium Essay

Fitness, Inc.

...Kate was also rendering services to clients utilizing Private Fitness, Inc.’s equipment and keeping client payments. Rosemary has realized that operational...

Words: 397 - Pages: 2

Premium Essay

Mm522

...Situational Analysis Next Gen Fitness is a start-up company seeking to promote fitness and health reformation to youths and adolescents living within urban America city limits. NextGen staff consist of 14 professionals with backgrounds in fitness, nutrition, psychology and sports medicine. Our unique ability to serve this customer base is all the employees come from the same environment and have a...

Words: 2781 - Pages: 12

Premium Essay

Happy Feet Line Dance

...Nova Southeastern University Wayne Huizenga Graduate School Of Business & Entrepreneurship Assignment for Course: Mktp 5005 Submitted to: Dr. Stiber Submitted by: Angela Moore N01012654 Date of Submission: November 25, 2012 Title of Assignment: Happy Feet Soul Line Dance Group CERTIFICATION OF AUTHORSHIP: I certify that I am the author of this paper and that any assistance I received in its preparation is fully acknowledge and disclosed in the paper. I have also cited any sources from which I used data, ideas of words, whether quoted directly or paraphrased. I also certify that this paper was prepared by me specifically for this course. Student Signature: ___Angela Moore________________________ ******************************************* Instructor’s Grade on Assignment: Instructor’s Comments: HAPPY FEET LINE DANCE Angela Moore November 25, 2012   Table of contents Executive Summary 1 Group Description 2 Mission and Goals 2 Core competencies 3 Situational Analysis 3 Competitors 4 Target market 5 The Marketing Mix 6 Product Strategy: 6 Distribution Strategy: 6 Promotion Strategy: 6 Price Strategy: 7 Customer Relationship Management 8 Budget and Monitoring 9 Summary and Conclusions 10 Bibliography 11 Executive Summary Line dance origins date back to traditional folk dance (Tatum, 2012). Traditionally, dancing has been around for many years, although there are many......

Words: 2452 - Pages: 10