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Sensations Athletic Club Sensations Athletic Club (SAC) is a new athletic facility, located in Saskatoon, Saskatchewan. SAC is owned and operated by Hd Savage, a

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Sensations Athletic Club Sensations Athletic Club (SAC) is a new athletic facility, located in Saskatoon, Saskatchewan. SAC is owned and operated by Hd Savage, a former Olympic gold medalist in weightlifting, Hulk decided to make his passion his business by opening open a loca Eym. SAC has the following mission statement: "SAC provides the residents of Saskatoon the opportunity to live a healthier, happier, and longer life by providing affordable aca to athletic equipment, aerobic classes, and specialized dieticians Hulk borrowed $10 million from the bank in order to finance the required start-up investments in working capital and copital assets. Hulk invested $2 million of his own money (that he earned through his career as a weightlifter and professional wrestler) The bank does not want the debt to equity ratio to exceed 51. The first year of business has been a bit a rocky, as Hulk's expertise is in weight training, as opposed to running a business However, SAC was able to attract 5,000 people to purchase full memberships. It was difficult to attract new members during the first few months of operations. In order to attract more members, Hulk implemented the following creative marketing initiatives during the middle of the year: Savage Points-SAC offers its members 1 point per visit to the gym (maximum of 1 point per day). Savage Points can be redeemed for free passes for a guest or for a free protein drink Initial Fee Return Guarantee-For three months, SAC provided new members with a guarantee period whereby their initial membership fee could be returned if they decide to discontinue their membership within the first year Free Membership Challenge - Sembers are entered into a draw every time they access them, and provided with a chance to win free membership fees for life. Hulk has come to you, Badami and Lusamba LLP, for assistance regarding the preparation of the December 3 yeatinancial statements in accordance with ASPE Halk knows how much canh came in from membership, but is unsure about how to revenge should be recognised. In addition, Hulk needs help understanding how the marketing initiate impact the financial statement. Additional details on the marketing initiatives can be found in Exhibit which outlines pour most recent calon Sith Hull Sensations Athletic Club Sensations Athletic Club (SAC) is a new athletic facility, located in Saskatoon, Saskatchewan. SAC is owned and operated by Hd Savage, a former Olympic gold medalist in weightlifting, Hulk decided to make his passion his business by opening open a loca Eym. SAC has the following mission statement: "SAC provides the residents of Saskatoon the opportunity to live a healthier, happier, and longer life by providing affordable aca to athletic equipment, aerobic classes, and specialized dieticians Hulk borrowed $10 million from the bank in order to finance the required start-up investments in working capital and copital assets. Hulk invested $2 million of his own money (that he earned through his career as a weightlifter and professional wrestler) The bank does not want the debt to equity ratio to exceed 51. The first year of business has been a bit a rocky, as Hulk's expertise is in weight training, as opposed to running a business However, SAC was able to attract 5,000 people to purchase full memberships. It was difficult to attract new members during the first few months of operations. In order to attract more members, Hulk implemented the following creative marketing initiatives during the middle of the year: Savage Points-SAC offers its members 1 point per visit to the gym (maximum of 1 point per day). Savage Points can be redeemed for free passes for a guest or for a free protein drink Initial Fee Return Guarantee-For three months, SAC provided new members with a guarantee period whereby their initial membership fee could be returned if they decide to discontinue their membership within the first year Free Membership Challenge - Sembers are entered into a draw every time they access them, and provided with a chance to win free membership fees for life. Hulk has come to you, Badami and Lusamba LLP, for assistance regarding the preparation of the December 3 yeatinancial statements in accordance with ASPE Halk knows how much canh came in from membership, but is unsure about how to revenge should be recognised. In addition, Hulk needs help understanding how the marketing initiate impact the financial statement. Additional details on the marketing initiatives can be found in Exhibit which outlines pour most recent calon Sith Hull

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