Summary:

Wheel Easy was a mobile automotive company based in London, Ontario, that specialized in on-site seasonal tire-swapping, storage and vehicle maintenance services. The founder of Wheel Easy, Dennis Ho, graduated from Ivey Business School in 2021. Shortly after, Ho recognized a common problem among many vehicle owners; the inconvenience of taking their car somewhere to get fixed and not having a vehicle while the service was being completed. With a strong passion for mechanics and entrepreneurship, Wheel Easy was founded. The early success of the company left Ho determined to take Wheel Easy to the next level in 2023. New equipment worth $30,000 could support this growth but a loan from the bank needed to be secured for it. In this case, students will evaluate the Statement of Cash Flows and financial ratios as a part of the assessment process for the loan application. Additionally, 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 decide whether the loan should be granted. This financial and accounting management case is designed for undergraduate students at the introductory level.