You are a consultant with Honest Dave's Accounting LLP in Calgary, AB. Yesterday you had a meeting with a new client, Harry Vardon. Mr. Vardon has just inherited the BallyGlenGally Golf Club from his father.

The BallyGlenGally Golf Club is located in Airdrie, just north of Calgary. It is a public golf course; golfers can buy season passes entitling them to unlimited golf during the season, which runs from May through October, depending on weather. Golfers can also pay a daily greens fee, entitling them play 18 holes on that day. The Club has a small dining room where golfers can eat; occasionally, this room is used to cater for special events such as weddings. The Pro Shop sells golf merchandise (clothing, clubs, and golf balls) as well as lessons. Golfers can practice at the driving range ("the Range") by paying for a bucket of balls.

Mr. Vardon has always loved golf, and is looking forward to operating the club. However, he has no experience in running a golf club; up to now, he has run a small employment firm supplying part-time workers to the oil industry.

He is worried about the club's financial performance over the past several years and has asked you for advice. He wants to know if there are any specific items in the income statement that need improvement. He has asked you to look at the trends and industry benchmarks, and tell him where he needs to concentrate his efforts. He has given you a summary of the club's performance over the past several years (see below).

There is very little information available on the financials of golf clubs, but you did come across one brief summary:

"For the typical public golf course that grosses $1.4 million, administrative costs of $200,000, food and beverage expenses of $100,000, pro shop expenses of $300,000 and maintenance costs of $550,000 could be anticipated."

J. J. Keegan (28 December 2018). Generally Accepted Accounting Principles - Are There Rules for Golf Courses? https://jjkeegan.com/generally-accepted-accounting-principles-are-there-rules-for-golf-courses/

Bullet points on what is the issues and what should be improve.

Income Statement, BallyGlenGally Golf Club

2015

2016

2017

2018

2019

($000)

($000)

($000)

($000)

($000)

Revenue

Green fees

$600

$621

$700

$718

$735

Season passes

$116

$138

$151

$189

$210

Carts

$165

$190

$200

$198

$167

Merchandise

$120

$141

$165

$178

$175

Food and Beverage

$421

$520

$569

$598

$620

Range

$31

$35

$40

$39

$46

Other

$47

$53

$51

$47

$66

Subtotal

$1,500

$1,698

$1,876

$1,967

$2,019

Cost of goods-Merchandise

$82

$100

$115

$132

$139

Cost of Goods-Food and Beverage

$141

$234

$256

$281

$304

Cost of Goods Sold

$223

$334

$371

$413

$443

Net Operating Income

$1,277

$1,364

$1,505

$1,554

$1,576

Administration

$255

$289

$319

$340

$345

Food and Beverage

$100

$115

$130

$129

$136

Pro Shop

$325

$370

$400

$425

$437

Maintenance

$600

$680

$745

$742

$750

Other

$51

$42

$57

$35

$49

Total Expenses

$1,331

$1,496

$1,651

$1,671

$1,717

EBITDA

-$54

-$132

-$146

-$117

-$141

Interest, Taxes, Depreciation, Amortization

$38

$46

$37

$30

$35

Net Income

-$92

-$178

-$183

-$147

-$176