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The E-Line Cityboard

Six months after incorporating the company, the two founders of the firm E-Line Cityboard Supply Ltd. (ELC) were preparing the first Board of Directors meeting. ELC was a London-based distributor and online retailer of the E-Line Cityboard, a portable and rechargeable battery-powered self-balancing wheeled board, commonly referred to in the market as a "hoverboard." Increased competition and legislation prohibiting the use of hoverboards in public areas were some of the challenges facing the company and would have be discussed at the meeting. Administratively, what bothered them most was that they had to prepare financial information for the Board to present the company's situation after six months of operations. What exactly did they need to prepare? How should they do it?

Collection: IESE (España)
Ref: C-784-E
Format: PDF
Number of pages: 6
Publication Date: Jun 19, 2017
Language: English

Description

Six months after incorporating the company, the two founders of the firm E-Line Cityboard Supply Ltd. (ELC) were preparing the first Board of Directors meeting. ELC was a London-based distributor and online retailer of the E-Line Cityboard, a portable and rechargeable battery-powered self-balancing wheeled board, commonly referred to in the market as a "hoverboard." Increased competition and legislation prohibiting the use of hoverboards in public areas were some of the challenges facing the company and would have be discussed at the meeting. Administratively, what bothered them most was that they had to prepare financial information for the Board to present the company's situation after six months of operations. What exactly did they need to prepare? How should they do it?
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Year: 2015
Geographic Setting: Reino Unido

Learning Objective

This is a basic case to introduce students to the financial accounting involved in the creation of a commercial business and its first year of operations. The case helps students understand the main concepts of the balance sheet, income statement and cash-flow statement and demonstrates the preparation and usefulness of financial statements. The case describes some events that may help the professor discuss some of the most common accounting policies. It can be used as an introductory case for any financial accounting course or as a stand-alone case for short courses that only include one or two sessions of financial accounting.

The E-Line Cityboard

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"The E-Line Cityboard"