Outdoors R Us owns several membership-based campground
resorts throughout the Southwest. The company sells
campground sites to new members, usually during a get-
acquainted visit and tour. The campgrounds offer a wider array of
on-site facilities than most. New members sign a multi-year
contract, pay a down payment, and make monthly installment
payments. Because no credit check is made and many
memberships originate on a spur-of-the-moment basis,
cancellations are not uncommon.
Business has been brisk during its first three years of operations,
and since going public in 2000, the market value of its stock has
tripled. The first sign of trouble came in 2013 when the new sales
dipped sharply.
One afternoon, two weeks before the end of the fiscal year, Diane
Rice, CEO, and Gene Sun, controller, were having an active
discussion in Sun's office.
Sun: I've thought more about our discussion yesterday. Maybe
something can be done about profits.Rice: I hope so. Our bonuses
and stock value are riding on this period's performance.Sun:
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- Fall '14
- Financial Accounting, Revenue, sales revenue, New Members, Outdoors R Us
