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    Capital One Case Study

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    The Case Interview • What is a case interview? The Case Interview • What specific skills does it assess? • How to prepare for a case interview? • An interactive example. What is a “Case Interview” anyway? The Case Interview Simulation of a business problem. Similar to what our associates encounter every day. Series of open-ended questions. They’re designed to stimulate your conceptual‚ quantitative‚ analytical and – most importantly – creative abilities. The Case Interview There are

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    Lesson 1:  The Accounting Process (Textbook Libby et al. Chapters 1 and 2). Objectives:      When you have successfully completed this lesson‚ you will be able to... Define accounting and explain its purpose Define business and identify the different types of businesses Explain the accounting equation: Assets = Liabilities + Owner’s Equity Visualize the start of a business‚ create accounting transactions for it‚ and prepare simple financial statements  Reading Assignment Please read chapters

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    Key Formulas SEE Articulation- Pg. 16 Income= Revenues - Expenses Assets = Liabilities + Equity Gross Profit = Sales Revenue- COGS Pg. 12 Assets (Listed in order of solvency) Cash………………………………………………………………..$1‚955 Non-Cash………………………………………………………..13‚043 Total Assets….....................................................$14998 Current yr net income % Return on = Net Income = [(Prev. yr S/E + Current yr. S/)/2] Equity (ROE) Average S/E Pg. 21 Beginning retained Earnings + Net Income

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    after their quarterly report of that period is mainly due to above listed issues. Analysis According to the report from 2007 financial Tables‚ the biggest source of total advertising revenue is Google web sites‚ $3.377 million (55%) in 2005‚ $6.332 million (60% )in 2006 and $10‚624 million (64%) in 2007. Revenues increased from $6.138 million in 2005 to $10‚604 million in 2006 and $16‚593 million in 2007. This is 73% growth from 2006 to 2007 and 56% growth from 2006 to 2007. The growth of Google

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    products? Potential Benefits: 1. How large is the (existing/potential) market for this product? 2. How much revenue is expected from it? 3. How long is the potential life of this product? 4. What are the growth potentials of this product? 5. How long will take for competitors to imitate/ pioneer a similar product? PROS CONS GangBuster Expansion Program Maintains revenue stream Limits Budget of R&D for other projects ($300‚000 needed to maintain current sales) There is still potential

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    Aqua Bounty: Case Analysis

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    pays off. Solutions (Shrimp IMS and anti-virus drug VPX) were developed to prevent commercial-farmed shrimps from bacterias and a specific kind of virus. This pipeline of Shrimp IMS was built by Aqua Bounty in 2005 and then contributed to all of its revenue in 2005. The core business that has huge potential application prospect once commercialized‚ is still delayed due to regulatory‚ so does positive net income. The company also needs additional capital for further investments over the coming years.

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    | 30 | Unearned Service Revenue | 4100 |   |   |   | Service Revenue |   | 4100 |   |   | (to record revenue earned) |   |   | Jun | 30 | Salaries Expense | 1250 |   |   |   | Salaries Payable |   | 1250 |   |   | (to record accrued salaries) |   |   | Jun | 30 | Depreciation Expense | 250 |   |   |   | Depreciation Equipment |   | 250 |   |   | (to record monthly depreciation) |   |   | Jun | 30 | Accounts Payable | 3900 |   |   |   | Service Revenue |   | 3900 |   |   | (to

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    Segment Reporting

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    statements. REPORTABLE SEGMENT SFAS 131‚ Disclosures about Segments of an Enterprise and Related Information‚ defines an operating segment as a component of an enterprise that engages in business activities from which it may earn revenues and incur expenses (including revenues and expenses relating to transactions with other components of the same enterprise)‚ whose operating results are regularly reviewed by the enterprise’s chief operating decision maker to make decisions about resources to be

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    Accounting Standards Board. (2012). SFAS 106‚ Accounting for Postretirement Benefits Other Than Pensions. Financial Accounting Standards Board. (2012). Statement of Position 98-5 Reporting on the Costs of Start-Up Activities. Investopedia. (2012). Revenue Recognition. http://www.investopedia.com/terms/r/revenuerecognition.asp#ixzz1xjbOoqk4 Investopedia. (2012). What ’s the difference between bottom-line and top-line growth? http://www.investopedia.com/ask/answers/149.asp#ixzz1xjKX3PXh Kylie Keener

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    Bausch and Lomb, Inc (a)

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    1. What is the impact of the December 1993 shipments of conventional lenses to Bausch and Lomb 1993 financial statements? Is the impact significant? The impact was:- i) Increased revenue by $22M ii) Reduced inventory by 1.8 million pair. Based on the COGS of 45%‚ this could mean a reduction in inventory of close to $10M. iii) There is very little increase in SG&A as not much was spend in terms of sales effort. iv) AR increased significantly with some of the promissory notes are payable in

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