Trevose Fitness Center Balance Sheet
|
| (numbers are in 000's) |
As of December 31, XXXX |
|
2011 |
2012 |
2013 (e) |
| Assets: |
|
|
|
| Cash |
$ 20,000 |
$ 30,000 |
$ 10,000 |
| Short-Term Investments |
$ 5,000 |
$ 7,000 |
$ 6,000 |
| Accounts Receivables |
$ 10,000 |
$ 13,600 |
$ 20,000 |
| Inventories |
$ 2,000 |
$ 3,000 |
$ 7,000 |
| Total Current Assets: |
$ 37,000 |
$ 53,600 |
$ 43,000 |
| Gross Fixed Assets |
$ 800,000 |
$ 850,000 |
$ 1,600,000 |
| Less Accumulated Depreciation |
$ 320,000 |
$ 340,000 |
$ 520,000 |
| Net Fixed Assets |
$ 480,000 |
$ 510,000 |
$ 1,080,000 |
| Total Assets: |
$ 517,000 |
$ 563,600 |
$ 1,123,000 |
|
|
|
|
|
|
|
|
| (numbers are in 000's) |
As of December 31, XXXX |
|
2011 |
2012 |
2013 (e) |
| Liabilities : |
|
|
|
| Accounts Payable |
$ 1,500 |
$ 2,000 |
$ 5,000 |
| Notes Payable |
$ 8,000 |
$ 10,000 |
$ 20,000 |
| Accruals |
$ 2,000 |
$ 3,000 |
$ 7,000 |
| Total Current Liabilities: |
$ 11,500 |
$ 15,000 |
$ 32,000 |
| Long-Term Debt |
$ 200,000 |
$ 180,000 |
$ 400,000 |
| Total Liabilities: |
$ 211,500 |
$ 195,000 |
$ 432,000 |
|
|
|
|
| Equity: |
|
|
|
| Common Stock (200,000 shares) |
$ 200,000 |
$ 200,000 |
$ 500,000 |
| Retained Earnings |
$ 105,500 |
$ 168,600 |
$ 191,000 |
| Total Equity: |
$ 305,500 |
$ 368,600 |
$ 691,000 |
|
|
|
|
| Total Liabilities and Equity: |
$ 517,000 |
$ 563,600 |
$ 1,123,000 |
Determine two strategies that TFC could utilize to reach its expansion goals. You may, for example, consider your analysis of TFC's financial statements, as well as your knowledge of TFC's excessive cash position. Provide a rationale for your response