BUS 512A
Case Questions
Winter 2016
Wareham SC Systems, Inc.
1. What is (are) Wareham’s current revenue recognition policy (ies)?
2. Using the limited information in the case, do the industry characteristics or the current revenue recognition policies encourage manipulation of revenues? If so, how could Wareham manipulate its earnings?
3. For each of the specific contracts described in the case, please describe the best revenue recognition policy considering the criteria in SAB 101. (Onsetcom, Cataumet, Sandham, XLSemi, Technical Devices and Ashaban)
TechMall.com’s Revenues
Note Exhibit 3, Year 2 cash flows, the “add total change in cash” is an incorrect number. It should be $1,371,350.
1. What are the revenue streams
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3. Given the use of each resource in the sales fulfillment cycle, determine the profitability of each customer.
4. What should Dakota do based on the information you determined?
Anwar Aluminum Works
1. What are the advantages and disadvantages of AAW accepting each customer order?
2. Calculate the contribution margin rate for each product order
3. Determine the return on investment for each order based on the relevant cash flows?
4. Are there other considerations or calculations that should be taken into account before a final decision is made?
5. What is your decision and why did you come to that conclusion?
Tots R Us
Answer questions 1, 2,4,5,6, and 7
Hint: For question one, assume that there are two cost pool; Building $216,000 and everything else $121,000.
Component Technologies (Required)
Answer questions 1a, 1b, 1c, 2, and 3.
What would you recommend that Component Technologies do?
Note: 1993 is the base year for your analysis in Questions 1a, 1b, and 1c
Healthy Life Group (Required)
1. Complete of SWOT analysis of the proposed project
2. Complete an income statement, balance sheet and statement of cash flows for 2011. Please provide information on any assumptions you make not already stated in the case.
3. Complete an income statement, balance sheet and statement of cash flows for 2011 assuming that sales projects were 20% lower
4. Based on the analysis and financial statements, should the Larson’s
3. SciTronics had a total of $75000 of capital at year-end 2008 and earned, before
Nike was founded by Bill Bowerman and Phil Knight. The two men met when Bowerman was coaching track and field at the University of Oregon and Knight was a middle distance runner on his team. After earning an MBA from Standford, Knight returned to Oregon and approached Bowerman with an idea to bring in low priced, high-tech athletic shoes from Japan to compete in the United States athletic shoe market. With a handshake and a five hundred dollar investment by both men, Blue Ribbon Sports was born in 1964. BRS began importing shoes from Onitsuka Tiger, with Knight making sales at high school track meets and Bowerman
a. This particular industry has a constantly increasing cost. There will be an increase in the demand for input factors for one key reason. Every day, new companies will be introduced into this market of remodeling, economic profits being the encouraging factor. Because of this, there will be a bid up on input prices for the companies in the industry of remodeling. “When a market is characterized by a large number of small producers, the demand curve facing the manager of each individual firm is horizontal at the price determined by the
Workplace romances are now one of the challenges that organizations of all sizes have to address. How they address them varies from organization to organization. Some businesses and organizations strictly prohibit them in any form or fashion, while others prohibit them when the participants are in certain roles within the organization. Some companies have chosen not to address the issue at all and others are using a more formal method of documenting and mitigating the risk they feel these relationships pose. One of the methods of documenting, and potentially mitigating, this
Revenue recognition is one of the top causes for financial statement restatements. In addition, revenue recognition is an area commonly questioned by the Securities and Exchange Commission (SEC) staff in their review of public filings and resultant comment letter process. Furthermore, revenue recognition is often prey to financial fraud.
1. Brockwell left his boat at Lake Gaston Sales to be repaired. Brockwell was required to sign a form that states that Lake Gaston Sales has no responsibility for any loss to any property in or on the boat. After the repair, Brockwell is missing electronic equipment and other items of his are damaged. Lake Gaston Sales is using an Exculpatory Clause. In some cases an exculpatory clause is may be unenforceable. Items damaged and stolen from Brockwell’s boat could be a result from Lake Gaston’s Sales’s negligence of taking care of and respecting customer property. This Exculpatory Clause likely will not be enforced because it is seeks
This assignment will give you the opportunity to choose a case study, and then write about the ethical implications and the impact of the events that are described. Each case study includes a set of questions that you should answer. You can choose either Case Study 9.1: Unprofessional Conduct, or Case Study 8.4: Have Gun Will Travel.
Advantages of Doing Business in China: As mentioned previously, there are many organizations around the whole world that perform their business in China. They do business in China due to the fact that China has a reliable market. It is also expected that the organizations doing business in China will continue to grow. Some advantages of doing business in China are that it is a major emerging market around the world. Also there are a lot of opportunities for organizations to invest in China for a longer period of time due to expanding of technology and
The main purpose of the Integrative Learning Project (ILP) is to introduce an authentic or fabricated company/industry to research. The company’s organizational setting includes the mission statement of the company, who the internal/external customers are, what aspects can
According to Gitman, the goal of the firm, and therefore of all managers and employees, is to maximize the wealth of the owners for whom it is being operated (2009). The financial manager is responsible for acquiring sources of financing and allocate amongst competitive investment alternatives. The ultimate goal is to invest in projects yielding higher returns than amount of financing used to invest, so profits can be used satisfy claims and increase shareholder wealth. The issues facing financial managers are therefore to 1) increase sources of financing from investors and 2) increase shareholder wealth while maintaining a
Jane thinks she will be taking ten months’ maternity leave after the birth of their child. Her employer’s maternity package is full pay for the first six months, and then on the statutory maternity pay, worth about £94 net per week, for the further four months. They looked into Adan taking some paternity leave but have decided against it, and
Current and historical Financial Statements (Income Statement (I/S), Balance Sheet (B/S) and Statement of Cash Flows) from the three most current years for the firm
Revenue is the gross inflow of economic benefits during the period arising in the ordinary course of activities. Revenue should be recognized when the future economic benefits that will flow to the entity can be measured reliably. The recognition criteria are usually applied separately to each transaction, but sometimes and under specific circumstances, it is necessary to apply the recognition criteria to the separate recognizable parts or of a single transaction in order to reflect the substance of the transaction. In aviation industry, the revenue transaction or events takes a significant period of time in order to complete because of the nature of product delivering against the sum of money. The five‐step revenue recognition process for this transaction are as follows:
Tinker & Tailor’s Home Security Service: “The limited partnership form of business organization was primarily created to address one of the worst shortcomings of the traditional partnership form: unlimited personal liability for financial obligations incurred by the partnership” (Seaquist, 2012). Those involved in a limited partnership are in a unique situation in that they are only legally responsible for their investment in the partnership