This exercise asks you to apply what you know about Annual Accounts to Colorado Ricardo Mountain Bikes.
The Scenario: Colorado Ricardo Mountain Bikes
Colorado Ricardo Mountain Bikes was founded by Ricardo Francisco, a keen off-road cyclist who grew frustrated with bikes breaking down under the strain of the Colorado mountains. After years of trial and error, he built a bike tough enough to survive the terrain and named it the “Colorado Ricardo”. Word spread quickly among local riders, and Ricardo gave up his day job to build and sell bikes full-time from a small workshop outside Denver.
Colorado Ricardo has always produced a simple Profit and Loss Statement and Balance Sheet for its own use. Ricardo is now considering taking out a larger loan to fund the e-mountain-bike launch, and his bank has asked for a full set of annual accounts rather than the basic statements he has produced so far.
Once you have drafted your own answer, compare it with Marketing Teacher’s suggested answer.
