ACC308DIS6 - Outdoors R Us owns several membership-based campground resorts throughout the Southwest The company sells campground sites to new members

ACC308DIS6 - Outdoors R Us owns several membership-based...

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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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