AIN3701 Assignment 3 Memo 2025 |
Complete Detailed Solutions & Answers
Due 8 August 2025 University of South Africa
Course: Automation and Data Analysis (AIN3701) Prepared for
Students
Submission Deadline: 8 August 2025, 20:00 August 10, 2025
,AIN3701 Assignment 3 Memo 2025
Contents
1 Introduction 2
2 Question 1: Fishbone Diagram for Membership Decline 2
2.1 Question 1(a): Creating the Fishbone Diagram . . . . . . . . . . . . . . . . . . 2
3 Question 2: IFRS 15 Revenue Recognition 3
3.1 Question 2(a): Identifying Performance Obligations . . . . . . . . . . . . . . . 3
3.2 Question 2(b): Journal Entry at Contract Inception . . . . . . . . . . . . . . . 4
3.3 Question 2(c): Journal Entry at Month-End (31 January 2025) . . . . . . . . . 4
3.4 Question 2(d): Journal Entries for T-Shirt Incentive . . . . . . . . . . . . . . . 4
3.5 Question 2(e): Journal Entry for Non-Qualified Gym Bag . . . . . . . . . . . . 5
4 Question 3: Excel-Based Summaries 5
4.1 Question 3(a): Revenue Summary . . . . . . . . . . . . . . . . . . . . . . . . 5
4.2 Question 3(b): Inventory Summary . . . . . . . . . . . . . . . . . . . . . . . . 6
4.3 Question 3(c): Comment on Inventory Discrepancies . . . . . . . . . . . . . . 6
4.4 Question 3(d): Internal Control Measures . . . . . . . . . . . . . . . . . . . . 6
5 Additional Questions and Answers 7
6 Conclusion 18
Page 1 of 18
, AIN3701 Assignment 3 Memo 2025
1 Introduction
This document provides comprehensive solutions and detailed explanations for AIN3701 As-
signment 3, 2025, focusing on the FitNation Gym case study. The assignment addresses data
analysis, automation, and financial accounting tasks related to the gyms operations, specifically
tackling membership decline, IFRS 15 compliance, and data-driven summaries. The solutions
are structured to meet the assignment requirements while incorporating 100 additional rele-
vant questions to enhance understanding of automation, data analysis, and financial reporting
concepts.
All responses adhere to the assignment instructions, including creating a fishbone diagram, ad-
dressing IFRS 15 revenue recognition, preparing journal entries, and generating Excel-based
summaries. Additional questions cover advanced data analytics, internal controls, and automa-
tion techniques relevant to the fitness industry.
2 Question 1: Fishbone Diagram for Membership Decline
2.1 Question 1(a): Creating the Fishbone Diagram
Based on the internal strategy meeting dialogue, we need to create a fishbone (Ishikawa) dia-
gram to identify the causes of a 12% membership decline at FitNation Gym. The diagram must
include at least four root cause categories, each with a minimum of two contributing factors.
Solution:
The fishbone diagram is created in Microsoft Word using SmartArt (Hierarchy > Horizontal
Hierarchy) or manually drawn shapes. Below is a text-based representation of the diagram,
which should be visually recreated in Word.
Main Problem: Membership Decline at FitNation Gym (12% decrease this quarter)
Root Cause Categories and Contributing Factors:
• Marketing & Communication
– Ineffective social media campaigns (low reach and engagement on Instagram and
TikTok).
– Lack of follow-up with former members to encourage rejoining.
• Customer Service
– Slow response to member queries and complaints.
– Poor onboarding experience for new members.
• Facilities & Operations
– Delayed maintenance of locker areas and showers.
– Shortage of childcare staff, impacting parent members.
• Class Scheduling & Delivery
– Instructors missing classes or swapping time slots without notice.
Page 2 of 18
Complete Detailed Solutions & Answers
Due 8 August 2025 University of South Africa
Course: Automation and Data Analysis (AIN3701) Prepared for
Students
Submission Deadline: 8 August 2025, 20:00 August 10, 2025
,AIN3701 Assignment 3 Memo 2025
Contents
1 Introduction 2
2 Question 1: Fishbone Diagram for Membership Decline 2
2.1 Question 1(a): Creating the Fishbone Diagram . . . . . . . . . . . . . . . . . . 2
3 Question 2: IFRS 15 Revenue Recognition 3
3.1 Question 2(a): Identifying Performance Obligations . . . . . . . . . . . . . . . 3
3.2 Question 2(b): Journal Entry at Contract Inception . . . . . . . . . . . . . . . 4
3.3 Question 2(c): Journal Entry at Month-End (31 January 2025) . . . . . . . . . 4
3.4 Question 2(d): Journal Entries for T-Shirt Incentive . . . . . . . . . . . . . . . 4
3.5 Question 2(e): Journal Entry for Non-Qualified Gym Bag . . . . . . . . . . . . 5
4 Question 3: Excel-Based Summaries 5
4.1 Question 3(a): Revenue Summary . . . . . . . . . . . . . . . . . . . . . . . . 5
4.2 Question 3(b): Inventory Summary . . . . . . . . . . . . . . . . . . . . . . . . 6
4.3 Question 3(c): Comment on Inventory Discrepancies . . . . . . . . . . . . . . 6
4.4 Question 3(d): Internal Control Measures . . . . . . . . . . . . . . . . . . . . 6
5 Additional Questions and Answers 7
6 Conclusion 18
Page 1 of 18
, AIN3701 Assignment 3 Memo 2025
1 Introduction
This document provides comprehensive solutions and detailed explanations for AIN3701 As-
signment 3, 2025, focusing on the FitNation Gym case study. The assignment addresses data
analysis, automation, and financial accounting tasks related to the gyms operations, specifically
tackling membership decline, IFRS 15 compliance, and data-driven summaries. The solutions
are structured to meet the assignment requirements while incorporating 100 additional rele-
vant questions to enhance understanding of automation, data analysis, and financial reporting
concepts.
All responses adhere to the assignment instructions, including creating a fishbone diagram, ad-
dressing IFRS 15 revenue recognition, preparing journal entries, and generating Excel-based
summaries. Additional questions cover advanced data analytics, internal controls, and automa-
tion techniques relevant to the fitness industry.
2 Question 1: Fishbone Diagram for Membership Decline
2.1 Question 1(a): Creating the Fishbone Diagram
Based on the internal strategy meeting dialogue, we need to create a fishbone (Ishikawa) dia-
gram to identify the causes of a 12% membership decline at FitNation Gym. The diagram must
include at least four root cause categories, each with a minimum of two contributing factors.
Solution:
The fishbone diagram is created in Microsoft Word using SmartArt (Hierarchy > Horizontal
Hierarchy) or manually drawn shapes. Below is a text-based representation of the diagram,
which should be visually recreated in Word.
Main Problem: Membership Decline at FitNation Gym (12% decrease this quarter)
Root Cause Categories and Contributing Factors:
• Marketing & Communication
– Ineffective social media campaigns (low reach and engagement on Instagram and
TikTok).
– Lack of follow-up with former members to encourage rejoining.
• Customer Service
– Slow response to member queries and complaints.
– Poor onboarding experience for new members.
• Facilities & Operations
– Delayed maintenance of locker areas and showers.
– Shortage of childcare staff, impacting parent members.
• Class Scheduling & Delivery
– Instructors missing classes or swapping time slots without notice.
Page 2 of 18
