ACCOUNTANCY MEMORANDUM SUBJECT: Blockbuster/Netflix Case Analysis Introduction In this memorandum‚ I will analyze the competitive environment that Blockbuster and Netflix faced‚ state the key income statement and balance sheet accounts for each firm and use ratios (including DuPont model) to draw comparisons between the two firms in 2008. Competitive Environment Blockbuster is an American-based chain of VHS‚ DVD‚ Blu-Ray‚ and video game rental store
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difference between fair values of net identifiable assets acquired and related cost. With vague useful life‚ goodwill is systematically tested for impairment at annually balance sheet date. Negative goodwill emerging on an acquisition is recognised in income statement. 2.3 Property‚ Plant and Equipment (AASB 116) Accounting
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decision makers. Key Product - Financial Statements IDENTIFYING This is the recognition and non-recognition of business activities as “accountable events”. An accountable/quantifiable event when it has an effect on ALE. Transactions involve 3rd parties while Events does not involve 3rd parties. Economic activities are referred to as transactions which may be classified as external or internal. • Production • Exchange • Income distribution • Consumption • Investment
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amortized using a unit-of-production method based on volumes produced and remaining proved reserves. The net unamortized capitalized costs of oil and gas properties less related deferred income tax MAY NOT exceed a ceiling consisting primarily of a computed present value of projected future cash flows‚ after income taxes‚ from the proved reserves. Under this method‚ the Company capitalizes all acquisition‚ exploration and development costs for the purpose of finding oil and gas reserves‚ including
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guide the company’s strategic production and marketing effort as well as highlight value adding and non-value adding activities performed by the company. At the end of the first quarter of 20x6‚ the following information was available: Income Statement For The Quarter Using Absorption Costing $’000 $’000 $’000 Sales 40‚000 Less Cost of goods sold Materials 8‚000 Labour 7‚500 Production overheads 10‚000 Total 25‚500 Gross margin 14‚500 Less Marketing
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financial statements Reading Assignment Please read chapters 1 and 2 of your textbook. Recommended Problem Assignment Chapter 1. Please complete MC questions plus Exercises 1-1‚ 1-3‚ 1-7‚ 1-8‚ 1-9 and 1-11 Chapter 2. Please complete MC questions plus Exercises 2-5‚ 2-7‚ 2-9‚ 2-12 and 2-13 Answers to these assignments are available in the folder “Answers to Assigned Multiple Choice and Exercises.” Outline of Readings: Chapter 1 Reviews the information conveyed in Financial Statements and
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Introduction Accounting Concepts and Principles These are rules and principles of accounting that are essential and should be followed by any organization in preparation of all accounts and financial statements. The following are accounting concepts and policies that must be applied in preparation of account statements‚ Entity Concept‚ according to this concept‚ the owner of the business or proprietor must be separate and distinct from the business or enterprise. Therefore business is treated as a separate
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making adjustments to net income by adding and subtracting the differences in revenue‚ expenses and credits which happen when transaction take place from one period to the next. Not all transaction involves cash items so some calculations have to be done when calculating cash flow from an operations standpoint. Because there are changes with account receivable from one period to the other it has to reflect on the cash flow statement because it affects the cash flow statement. When viewing the Eastman
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analysts and business press writers use accounting information‚ particularly earnings. The case is designed to give students “hands on” experience with complementary sources of information about Google’s performance—the formal audited financial statements‚ an earnings press release‚ pro forma earnings disclosure‚ and comparative stock charts. Google is a prime example of how good news is in the eye of the beholder! In Q4 2007‚ Google announced continued revenue growth and strong earnings. The press
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If we imagine about one question In which sector our business is booming most the answer would be certainly the banks. Bank includes all financial institutions‚ one of those principle activities is to take deposits and borrow with the objectives of lending and investing and which are with in the scope of banking or similar legislation. Bank represents a significant and influential sector of business worldwide. Most individuals and organizations make use of banks‚ either as depositor or borrowers
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