Luka$$s Snowboards $($B$)$ Pre$-$Work

There are $4$ parts to this pre$-$work assignment

Part $1$: Review the Who$/$What$/$Why$/$When$.$

WHO is the decision maker?

WHAT is the issue at hand $($decision to make,

problem to solve, opportunity to seize$)?$

WHY has the issue arisen now? What is its

significance to the organization?

WHEN does the decision maker have to decide,

resolve, act or dispose of the issue? What is

the urgency to the situation?

Part $2$: Conceptual questions

$1.$ Explain what accounts receivable is and why it is listed with current assets.

$2.$ Why is inventory a current asset and the waxing kit a non$-$current asset?

$3.$ Explain what retained earnings are and why they are in the owners$$ equity section.

$4.$ What is the difference between inventory and COGS?

$5.$ What is the difference between the money that Luka$$s mom and brother each gave him for the

business?