Accounting Systems And Business Strategy -Myassignmenthelp.Com

Question: Discuss About The Accounting Systems And Business Strategy? Answer: Introduction: In this report, a case of Hawthorn Leisure Works (HLW) has been evaluated to measure the total cash inflows of the company according to the present plan of the club and the cash inflows according to the future plan of the club. New plan explain that the few changes in the fee structure of the club would make a change in the total cash inflow of the company. Following is the detail of the case: Total members 2000 Individual $ 45 Student $ 30 Family $ 100 10 courts each club Hourly court fees $ 8 $ 12 Peak season: Time 12 Hours a day Capacity (Peak Season) 90% 100% (5 pm to 9 pm) 181 days (Oct to April) 50% 60% (9 am to 4 pm) Off Season 20% 40% New plan (Annual fees :) Individual $ 300 50% are individual (individual + student) Family $ 500 50% are family Promotional Campaign Individual $ 250 Family $ 450 The above table explain about the new and present plan of the company. Improvement in the fee structure: The club has made a new plan to make few changes into the total cash inflow of the company. Below given table express that how much cash inflow of the company is, according to the present fee structure of the company: Present cash flow estimations of the company Total number Cash Inflow Revenue: Members 2000 Individual 500 $ 22,500 Family 1000 $ 1,00,000 Student 500 $ 15,000 Off Season $ 52,99,200 Peak Season $ 3,88,06,400 Total cash inflow $ 4,42,43,100 (Davies and Crawford, 2011) The above table expresses that the present fee saturate of the company would help the company to earn $ 4,42,43,100 per year. In addition, the new plan fess structure and the cash inflow calculations are as follows: Future cash flow estimations of the company Total number Cash Inflow Revenue: Members 900 Individual $ 1,35,000 Family $ 2,25,000 Promotional Campaign 500 Individual $ 62,500 Family $ 1,12,500 Total cash inflow $ 3,60,000 The table depict that if the company would adopt the new fees structure than the total cash inflow of the company would be $ 3,60,000. It explains that the present fee saturate of the company would help the company to earn $ 4,42,43,100 per year and new fees structure than the total cash inflow of the company would be $ 3,60,000. That means, the cash inflow position of present fee structure is far better than the planned fee structure as in the new plan, hourly fee could not be get by the company and it is the biggest source of the cash inflow of the company (Horngren et al, 2005). Assumptions: According to the new plan, following cash inflow of the company would be: Future cash flow estimations of the company Total number Cash Inflow Revenue: Members 900 Individual $ 1,35,000 Family $ 2,25,000 Promotional Campaign 500 Individual $ 62,500 Family $ 1,12,500 It expresses that the cash has been generated on 1st Oct only and it has been assumed that the amount o promotional campaign would be taken by the company on 1st Oct only (Kaplan and Atkinson, 2015). Evaluation: According to the calculations and the evaluation, the present fee saturate of the company would help the company to earn $ 4,42,43,100 per year and new fees structure than the total cash inflow of the company would be $ 3,60,000. That means, the cash inflow position of present fee structure is far better than the planned fee structure as in the new plan, hourly fee could not be get by the company and it is the biggest source of the cash inflow of the company (Macintosh and Quattrone, 2010). Conclusion: To conclude, the cash inflow position of present fee structure is far better than the planned fee structure. Company should not go for any new plan and must continue with the current fee structure. References: Atrill, P. and McLaney, E.J., 2006.Accounting and Finance for Non-specialists. Pearson Education. Bromwich, M. and Bhimani, A., 2005.Management accounting: Pathways to progress. Cima publishing. Davies, T. and Crawford, I., 2011.Business accounting and finance. Pearson. Horngren, C.T., Sundem, G.L., Stratton, W.O., Burgstahler, D. and Schatzberg, J., 2005.Introduction to management accounting. Upper Saddle River, New Jersey: Prentice Hall. Kaplan, R.S. and Atkinson, A.A., 2015.Advanced management accounting. PHI Learning. Macintosh, N.B. and Quattrone, P., 2010.Management accounting and control systems: An organizational and sociological approach. John Wiley Sons. Ross, S, A,. Westerfield, R, W,. and Jaffe, J,.2007. Corporate Finance, India, the McGraw-hill. 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