Case Study 2 - Sweats Galore
Case Study 2 - Sweats Galore
ACCT 3121- Fall 2013
Due: Dec 4, 2013
The Business Situation
After graduating with a degree in business from Eastern University in Campus Town, USA, Michael Woods realized that he wanted to remain in Campus Town. After a number of unsuccessful attempts at getting a job in his discipline, Michael decided to go into business for himself. In thinking about his business venture, Michael determined that he had four criteria for the new business:
1. He wanted to do something that he would enjoy.
2. He wanted a business that would give back to the community.
3. He wanted a business that would grow and be more successful every year.
4. Realizing that he was going to have to work very hard, Michael wanted a business that would generate a minimum net income of $25,000 annually.
While reflecting on the criteria he had outlined, Michael, who had been president of his fraternity and served as an officer in several other student organizations, realized that there was no place in Campus Town to have custom sweatshirts made using a silk-screen process. When student organizations wanted sweatshirts to give to their members or to market on campus, the officers had to make a trip to a city 100 miles away to visit “Shirts and More.”
Michael had worked as a part-time employee at Shirts and More while he was in high school and envisioned owning such a shop. He realized that a sweatshirt shop in Campus Town had the potential to meet all four of his criteria. Michael set up an appointment with Jayne Stoll, the owner of Shirts and More, to obtain information useful in getting his shop started. Because Jayne liked Michael and was intrigued by his entrepreneurial spirit, she answered many of Michael’s questions.
In addition, Jayne provided information concerning the type of equipment Michael would need for his business and its average useful life. Jayne knows a competitor who is retiring and would like to sell his equipment. Michael can purchase
ACCT 3121- Fall 2013
Due: Dec 4, 2013
The Business Situation
After graduating with a degree in business from Eastern University in Campus Town, USA, Michael Woods realized that he wanted to remain in Campus Town. After a number of unsuccessful attempts at getting a job in his discipline, Michael decided to go into business for himself. In thinking about his business venture, Michael determined that he had four criteria for the new business:
1. He wanted to do something that he would enjoy.
2. He wanted a business that would give back to the community.
3. He wanted a business that would grow and be more successful every year.
4. Realizing that he was going to have to work very hard, Michael wanted a business that would generate a minimum net income of $25,000 annually.
While reflecting on the criteria he had outlined, Michael, who had been president of his fraternity and served as an officer in several other student organizations, realized that there was no place in Campus Town to have custom sweatshirts made using a silk-screen process. When student organizations wanted sweatshirts to give to their members or to market on campus, the officers had to make a trip to a city 100 miles away to visit “Shirts and More.”
Michael had worked as a part-time employee at Shirts and More while he was in high school and envisioned owning such a shop. He realized that a sweatshirt shop in Campus Town had the potential to meet all four of his criteria. Michael set up an appointment with Jayne Stoll, the owner of Shirts and More, to obtain information useful in getting his shop started. Because Jayne liked Michael and was intrigued by his entrepreneurial spirit, she answered many of Michael’s questions.
In addition, Jayne provided information concerning the type of equipment Michael would need for his business and its average useful life. Jayne knows a competitor who is retiring and would like to sell his equipment. Michael can purchase