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Submitted By harshfear13
Words 915
Pages 4
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 for TechMall?
2. What drives each of the revenue streams and how much does Tech Mall expect to earn from each stream?
3. Given the level of activity in each revenue stream, compare the amount of revenue expected from each revenue stream with their actual revenue. Is TechMall getting their expected revenue from each of the revenues streams?
4. If actual revenue isn’t what TechMall expected, what might be causing the variation?
5. What can be done to better manage TechMall’s revenue?

Great Dakota Bank: Online Banking

1. What are the advantages and disadvantages to Dakota Bank of the new online customers? (answer this questions without numbers)
2. Does it appear that the online customers add to Dakota’s bottom line? Compare the preliminary data to support your conclusion. Support your analysis using numbers given in the case.
3. Is the price of acquiring a new online customer worth the cost? Provide documentation using numbers in the case.
4. Should Dakota keep promoting online banking?

Dakota Office Products
Note: on page 5 of the case the gross margin for customer B should be $19,000.
1. Identify expenses

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