400% ← 2.83/1.35%=2.10 127‚500‚000 x 0.52= $6‚630‚000 One truck can carry $10 million worth of Wellbutrin XL tablet product. 2. How should the company recognize revenue based upon the two possible FOB contract structures mentioned in the case? Why? According to U.S. GAAP‚ there are four conditions in order to recognized revenue. First‚ Persuasive evidence of an arrangement exists. We can see that there must be an arrangement between Biovail and distributor. Second‚ the seller’s price to the
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Reporting Interpretations Committee (IFRIC). 2. Operating Revenue refers to the incomes that derived from everyday operations. As
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accounting predicts a periodic measure of performance that is used to predict future cash flows. This is the difference between cash receipts and cash payments from transactions related to providing goods and services during a reporting period. “Revenue is recognized when cash is received and expense is recognized when cash is paid”. ("Accrual basis accounting‚"). “When transactions are recorded on a cash basis‚ they affect a company’s books only once a completed exchange of value has occurred; therefore
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1. What assumptions underlie Oracle’s recognition of revenue for license fee. Are these assumptions reasonable given the firm’s business and operating policies? Oracle recognized its license fee either upon shipment of the product or at the time such agreements are effective. In most instance is this the date of the agreement. The assumptions underlying this method is that if the customer is creditworthy and the terms of the agreement are such that the amounts are due within one year and are non-refundable
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1) Variable expenses in relation to Revenue Hours are Power‚ Wages of Hourly Personnel‚ Corporate services‚ and Sales Promotions. Variable Expenses | January | February | March | Power | $1546 | $1485 | $1697 | Hourly Personnel | $7896 | $7584 | $8664 | Corporate Services | $15‚424 | $15‚359 | $15‚236 | Sales Promotions | $7‚909 | $7‚039 | $8‚083 | TOTAL VC | $32‚775 | $31‚467 | $33‚680 | FixedExpenses | January | February | March | Space Costs | $9‚240 | $9‚240 | $9‚240
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Company)‚ a rapidly growing online coupon merchant was forced by the SEC to file a restated S-1 registration statement. The reason for the restatement was that the SEC objected to the accounting methods that Groupon used in the calculation of its revenue‚ causing it to be overstated. According to Villanova University (2012)‚ Groupon’s auditors at Ernst & Young stated that Groupon was not setting aside sufficient funds to cover potential refunds to customers and this was allowed to persist due to
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Account: Where transactions are recorded - A separate account is used for each asset‚ liability‚ revenue‚ expense‚ gain‚ loss and capital (owner’s equity) Permanent accounts (or “real” accounts) Asset‚ liability‚ and equity accounts Appear on the balance sheet Permanent accounts are not closed at year end Temporary accounts (or “nominal” accounts) Revenue‚ expense‚ and dividend accounts Revenue and expenses are on the income statement; dividends are on the statement of changes in shareholders
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Technologies‚ Inc.—Revenue Recognition Lucent Technologies designs and delivers networks for the world’s largest communications service providers. Backed by Bell Labs research and development‚ Lucent relies on its strengths in mobility‚ optical‚ data and voice networking technologies as well as software and services to develop next-generation networks. The company’s systems‚ services and software are designed to help customers quickly deploy and better manage their networks and create new‚ revenue-generating
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Recommendation Prior Recommendation Date of Last Change Current Price (04/19/13) Target Price (IBM-NYSE) NEUTRAL Outperform 10/08/2009 $190.00 $200.00 IBM reported a dismal first quarter missing the Zacks Consensus Estimate on both lines. Revenue growth was particularly weak‚ due to execution problem and lackluster demand. We believe that sluggish IT spending remains the major headwind in the near term. Additionally‚ increasing competition in the hardware segment is another significant concern
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and dinner.Beside that‚ the breakfast service already successful increase 9% of their regular customers. First‚ to estimate the change by the CM‚ we need to consider some key items of cost and revenue which may related to the CM. According to the offical data.This chart shows the the baisc sales revenue and expense situation. The food cost include the products which directly effect the food. For example the food ingredient cost‚ transportation fees‚ package of the food. The food cost will be affected
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