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Acc650 t5

Acc650 t5

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Running head: CASE ANALYSIS 1

CASE ANALYSIS

Student Name

GCU – ACC 650

February 17, 2021

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CASE ANALYSIS 2

Case 9-45

1. City Racquetball Club will be able to advance the club’s ability to plan their cash

receipts if they were to move from charging an hourly rate and their membership as

well. Hourly rates for the courts change from time to time which makes the pricing

random and not set. With the new membership plan, it will remove the random and

unpredictable pricing which will make it a lot easier to establish the amount of

income that will be generated. It will be easier for the club to plan their cash receipts

because their income will become predictable.

2. a) The first key factor is that extra costs that will occur when executing the new

membership plan. The second factor is if the public will accept the new prices of the

new membership plan. If the public is not ok with the new prices of the new

membership plan, it will cause a decrease in memberships for the club.

b) CRC should prepare the following items so they can make a complete evaluation:

They should create an operating Expense Budget which will allow them to evaluate

possible expenses to be sustained over a period of time because of the implementation

of the new system (Williams, Haka, Bettner & Carcello, 2015). A Return on

Investment (ROI) should be prepared if investments are made because of the new

membership plan. The club should also create a budgeted income statement which

will have possible income and expenses that has happened because of the new

membership system. (Williams, Haka, Bettner & Carcello, 2015).

3. If the new membership plan were to be approved, their cash management will become

more precise than before. The collection of cash will become easier because the club

would only charge for one court fee and the membership as well.

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Running head: CASE ANALYSIS 1 CASE ANALYSIS Student Name GCU – ACC 650 February 17, 2021 CASE ANALYSIS 2 Case 9-45 1. City Racquetball Club will be able to advance the club’s ability to plan their cash receipts if they were to move from charging an hourly rate and their membership as well. Hourly rates for the courts change from time to time which makes the pricing random and not set. With the new membership plan, it will remove the random and unpredictable pricing which will make it a lot easier to establish the amount of income that will be generated. It will be easier for the club to plan their cash receipts because their income will become predictable. 2. a) The first key factor is that extra costs that will occur when executing the new membership plan. The second factor is if the public will accept the new prices of the new membership plan. If the public is not ok with the new prices of the new membership plan, it will cause a decrease in memberships for the club. b) CRC should prepare the following items so they can make a complete evaluation: They should create an operating Expense Budget which will allow them to evaluate possible expenses to be sustained over a pe ...
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