Summary:

A Friendlier Company Inc. was a startup reverse logistics company focused on reusable food containers as a way to eliminate single use plastics. Founded by CEO Kaylie Dale and COO Jacquie Hutching, the company aimed to create ways for the food service community to become more eco-conscious, particularly aiding restaurants in waste reduction. The process was simple; customers received their food in a container, scanned a QR code on the container to register it on the Friendlier app and then returne the container to a participating location to receive a return deposit. The early success of the company was attributed to the clear vision and strong values of the company. To support future growth, Friendlier needed to secure significant seed equity financing. In this case, students will evaluate the past performance of the company using an analysis of Statement of Cash Flows and financial ratios. Using management estimates, students are asked to project two years of Statement of Earnings as well as Statement of Financial Positions. Finally, students are expected to consider the impacts of seasonality on the business, as well as working capital sensitivity analysis alongside qualitative risks facing the company to determine how much seed capital is required to sustain the high-growth needed. This financial and accounting management case is designed for introductory business classes at the undergraduate level.

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