Samantha Taylor a former professional mountain biker from Squamish, British Columbia, found hersel

at a crossroads after a career$-$altering injury. Responding to her family's call, she ventured into managing unique Airbnb properties in Whistler, ultimately shaping her business into 'MountainWell Retreats', an innovative Airbb concept blending the tranquility of mountain retreats with the thrill of adventure sports. Samantha's vision for 'MountainWell Retreats' included immersive wellness programs, organic mountain cuisine, and adrenaline$-$pumping outdoor activities, all offered with exclusive membership packages and seasonal promotions.

Samantha Taylor's endeavor, 'MountainWell Retreats', has been a collective undertaking, with a circle of investors comprising close friends who share Samantha's vision. She assured them that, as the Airbnb business prospers, so would their returns. This commitment to growing returns has been a cornerstone of Samantha's business philosophy, showcasing her gratitude for their support and her dedication to ensuring they directly reap the rewards of the Airbnb's success.

However, recent financial indicators have raised concerns among the financial team. The financial analyst, focusing solely on the numbers, advises against increasing returns given the current fiscal climate. The worry is apparent: the diminishing cash reserves and rising liabilities suggest potential financial stress. This conservative viewpoint, intended to safeguard the Airbb's financial stability, clashes with Samantha's initial pledge to her investors.

Now faced with a challenging decision, Samantha must determine whether to uphold her original commitment to boost returns, thus preserving trust and goodwill among her investors, even if it strains the Airbnb's finances. Alternatively, she could heed the financial analyst's counsel to delay the return increment, potentially safeguarding the Airbnb's financial health but risking disappointment among her close$-$knit group of friends and investors. The path Samantha chooses will not only unveil her business acumen but also test the strength of her personal connections with those who invested not only their capital but also their belief in her.

Over the past two years, 'MountainWell Retreats' has encountered a decline in cash reserves, triggering concerns about liquidity and the ability to meet short$-$term obligations. Key movements in the Airbnb's fiscal position, as revealed by financial statement extracts, underscore the challenges and choices Samantha faces in steering the business forward.

Trainee Accountant: "Samantha, upon a thorough examination of the financials, we have observed an increase in revenue to $$550,000.$ However, our liquidity has diminished, and notably, our net income h declined.

Samantha: "Have we accounted for all income sources, and what is the extent of the decline in our Current ratio?"

Trainee Accountant: "Certainly, all income sources have been considered. The escalation in operating expenses is the primary factor affecting our financial standing, resulting in a decrease in this year's profit."

samantha: "The substantial shift from profit to a lower profit margin is concerning. We must carefully ssess our growth strategy and financial controls. Is there a possibility that we overlooked any aspect ur accounts?"

tainee Accountant: "Rest assured, our analysis is accurate. The loss can be primarily attributed to evated operating costs, particularly from the significant investment in upgrading our facilities, pacting our earnings."

Smantha: "These are indeed challenging times. Our commitment to enhancing the wellness experie to a substantial investment. We need to reassess our strategies, balancing financial stability while ying aligned with our long$-$term goals. It's crucial to evaluate if we might have overextended ourse ancially." Our building insurance comes at a hefty cost, but it's a necessity in my opinion. Just last ing one of our organized mountain trips, a customer took a tumble from her ski. Thankfully, her $5$ minor, and she didn't file any complaints.

Samantha is considering a strategic investment for the $2025$ budget, a vending machine with an acquisition cost of $$150,000.$ This decision prompts a critical choice for the financial team: selecting t appropriate amortization method for accounting purposes. Samantha believes in the immedia full utilization of the vending machine. Samantha would like you to comment on this investment.

As a financial consultant, you are expected to scrutinize the financial situation and provide insights that will support its strategy growth and bolster shareholder value, all while ensuring the integrity of its financial practices.