Tony Matheson plans to graduate from college in May 2012 after spending four yea
ID: 2362661 • Letter: T
Question
Tony Matheson plans to graduate from college in May 2012 after spending four years earning a degree in sports and recreation management. Since beginning T-ball at age five, he’s been actively involved in sports and enjoys the outdoors. Each summer growing up, he and his would spend two weeks at a father/son outdoor camp. These fond memories are part of the reason he chose his major. He wants to remain involved in these outdoor activities and provide others with the same adventures he was able to share with his dad. He decides to start an outdoor adventure company. However, he’s not sure he has the business background necessary to do this.This is where Suzie Ramos can help. Suzie also plans to graduate in May 2012 with a major in business. Suzie and Tony first met their sophomore year and have been friends ever since as they share a strong interest in sports and outdoor activities.
They decide to name their company Great Adventures. They will provide clinics for a variety of outdoor activities such as kayaking, mountain biking, rock climbing, wilderness survival techniques, orienteering, backpacking, and other adventure sports.
Required:
2. Discuss some of the typical financing, investing, and operating activities that a company like Great Adventures is likely to have.
Explanation / Answer
Typical financing , investing and operating activities for a Company like Great Adventures includes: Financing activities includes cash transactions with lenders , such as borrowing money and repaying debt,and with stockholders, such as issuing stock and paying dividends. Investing activities generally includes cash transactions for the purchase and sale of investments and productive long-term assets. Long-term assets are resources owned by a company that are thought to provide benefits for more than one year. Operating activities includes cash receipts and cash payments for transactions involving revenues and expenses.