Assignment Detail

Nepean Boards is a small company that manufactures and sells snowboards in Ottawa. Scott Redknapp, the founder of the company, is in charge of the design and sale of the snowboards, but he is not from a business background. As a result, the company’s financial records are not well maintained.

The initial investment in Nepean Boards was provided by Scott and his friends and family. Because his initial investments were relatively small, and the company has made snowboards only for its own store, the investors have not required detailed financial statements from Scott. But thanks to word of mouth among professional boarders, sales have picked up recently, and Scott is considering a major expansion. His plans include opening another snowboard store in Calgary, as well as supplying his “sticks” (board lingo for boards to other sellers.

Scott’s expansion plans require a significant investment, which he plans to finance with a combination of additional funds from outsiders plus some money borrowed from the banks. Naturally, the new investors and creditors require more organized and detailed financial statements than Scott previously prepared. At the urging of his investors, Scott has hired financial analyst Jennifer Bradshaw to evaluate the performance of the company over the past year.