What problem is NuPetCo facing? What does NuPetCo want to achieve or goals? Who are the stakeholders?

What problem is NuPetCo facing? What does NuPetCo want to achieve or goals? Who are the stakeholders?
 
 
 

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NuPetCo: A "Tail" of Two Leases Dr. Barbara Tarasovich, DPS, CPA,CGMA Chair of the Accounting & Information Systems Department Jack Welch College of Business & Technology Sacred Heart University Linda Hughen, PhD, CPA Assistant Professor, Accounting & Information Systems Department Jack Welch College of Business & Technology Sacred Heart University Dr. Bridget Lyons Professor of Finance Jack Welch College of Business & Technology Sacred Heart University INTRODUCTION shelter. Dakota was instrumental in product development as her new owners quickly learned that even the most voracious canine eaters could regard certain foods as unpalatable. NuPetCo was founded by its current chief executive officer (CEO), Brian Carol, along with his wife, the current chief By mid-2015, the Carols started sharing samples of their operating officer (CO0), Amy Carol. The privately held new creation, Beyond Mutt, with their friends at the local dog park. As news of the plant-based dog food circulated company is headquartered in Portland, Ore. The Carols began the company several years after losing Chase, their beloved among Portland-area pet lovers, Brian and Amy also began developing a similar plant-based food for cats. They were not surprised that their feline consumers were much more terrier, to heart disease at age 6. Brian and Amy worked closely with Chase's veterinarian, Dr. Sue Caveli, to design a plant- particular about tastes and textures compared to their canine based, meat-alternative diet that is rich in protein, whole grains, vitamins, and minerals, and low in sodium, cholesterol, consumers. But with much persistence, the Carols developed Impawsible Kibble, a meatless cat food, with the approval of and saturated fat. In 2014, the Carols first mentioned the idea their own two cats, Minnie and Tigger. of a meat-alternative pet food to Caveli, and she was intrigued. She was familiar with the academic studies that provided The Carols officially began NuPetCo in early 2017 and decided to monitor the product lines, Beyond Mutt for dog food and Impawsible Kibble for cat food, as two separate promising evidence of the health benefits of a plant-based diet for people but was not aware of any studies conducted on dogs or cats. Caveli also noted that the benefits of plant-based business segments. While Brian and Amy maintain the full food reached beyond the consuming pets' health; the use equity interest in the company, it is heavily debt-financed, of plant-based ingredients instead of beef and poultry were primarily through a 20-year, $10 million fixed-interest rate loan from First National Bank of Portland. The loan significantly associated with decreased carbon emissions and waste by-products. covenant stipulates that NuPetCo cannot exceed a liabilities- to-assets ratio of 0.75 and must maintain a current ratio above With Caveli's support and veterinary expertise, the Carols spent the next two years formulating the two types 1.30 based on financial statements prepared according to of vegetarian pet food that the company sells today. In the U.S. Generally Accepted Accounting Principles (GAAP). Upon obtaining financing, the Carols purchased a corporate office building in a commercial plaza close to the downtown early stages of product development, Brian and Amy adopted a spunky, 70-pound dog named Dakota from the local pet NuPetCo: A "Tail" of Two Leases Dr. Barbara Tarasovich, DPS, CPA,CGMA Chair of the Accounting & Information Systems Department Jack Welch College of Business & Technology Sacred Heart University Linda Hughen, PhD, CPA Assistant Professor, Accounting & Information Systems Department Jack Welch College of Business & Technology Sacred Heart University Dr. Bridget Lyons Professor of Finance Jack Welch College of Business & Technology Sacred Heart University INTRODUCTION shelter. Dakota was instrumental in product development as her new owners quickly learned that even the most voracious canine eaters could regard certain foods as unpalatable. NuPetCo was founded by its current chief executive officer (CEO), Brian Carol, along with his wife, the current chief By mid-2015, the Carols started sharing samples of their operating officer (CO0), Amy Carol. The privately held new creation, Beyond Mutt, with their friends at the local dog park. As news of the plant-based dog food circulated company is headquartered in Portland, Ore. The Carols began the company several years after losing Chase, their beloved among Portland-area pet lovers, Brian and Amy also began developing a similar plant-based food for cats. They were not surprised that their feline consumers were much more terrier, to heart disease at age 6. Brian and Amy worked closely with Chase's veterinarian, Dr. Sue Caveli, to design a plant- particular about tastes and textures compared to their canine based, meat-alternative diet that is rich in protein, whole grains, vitamins, and minerals, and low in sodium, cholesterol, consumers. But with much persistence, the Carols developed Impawsible Kibble, a meatless cat food, with the approval of and saturated fat. In 2014, the Carols first mentioned the idea their own two cats, Minnie and Tigger. of a meat-alternative pet food to Caveli, and she was intrigued. She was familiar with the academic studies that provided The Carols officially began NuPetCo in early 2017 and decided to monitor the product lines, Beyond Mutt for dog food and Impawsible Kibble for cat food, as two separate promising evidence of the health benefits of a plant-based diet for people but was not aware of any studies conducted on dogs or cats. Caveli also noted that the benefits of plant-based business segments. While Brian and Amy maintain the full food reached beyond the consuming pets' health; the use equity interest in the company, it is heavily debt-financed, of plant-based ingredients instead of beef and poultry were primarily through a 20-year, $10 million fixed-interest rate loan from First National Bank of Portland. The loan significantly associated with decreased carbon emissions and waste by-products. covenant stipulates that NuPetCo cannot exceed a liabilities- to-assets ratio of 0.75 and must maintain a current ratio above With Caveli's support and veterinary expertise, the Carols spent the next two years formulating the two types 1.30 based on financial statements prepared according to of vegetarian pet food that the company sells today. In the U.S. Generally Accepted Accounting Principles (GAAP). Upon obtaining financing, the Carols purchased a corporate office building in a commercial plaza close to the downtown early stages of product development, Brian and Amy adopted a spunky, 70-pound dog named Dakota from the local pet

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1 Problem faced by NuPetCo is the change in the Accounting Policy during the year 2021 as earlier bo... View the full answer