...interoffice memorandum to: from: subject: change in income statement presentation date: cc: Classification changes in the 2006 income statement of our client Lads and Lassies, Inc. I have researched the FASB Accounting Standards Codification for clarification for the reporting and presentation of the various income statement items you requested. There will need to be some changes to the income statement format. I will address each of the items separately. Net sales When Lads and lassies introduced Sassy Spa last year in 2005, they were able to consolidate the net sales in with Lads and Lassies clothing line for reporting purposes due to their percentage of sales being less than 10% of the total net sales. However do to the success of Sassy Spa in 2006 their sales, are now in excess of 10% of net sales and will need to be reported as a separate line item from Lads and Lassies clothing line net revenue per regulation S-X rule 5-03, §225-10-S99-2(a)(b) and §§1(a)(d). gross Profit Included in the regulation S-X Rule 5-03, §225-10-S99-2 and §§2(a) (d), are requirements the costs and expenses associated with the applicable sales be reported separately on the income statement. The direct expense items for Lads and Lassies and Sassy Spay will need to be broken out separately in the cost of goods sold section. If the depreciation expense is not included in Cost of Goods Sold, §ASC 225-10-299-8 requires the description line item to indicate exclusive of any depreciation...
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...Date: To: Audit Supervisor of Lads and Lassies From: Jian Liu Subject: Lads and Lassies (L&L)’s Income Statement Background: Lads and Lassies (L&L) has the following information for the income statement presentation: (1) net sales of $74.5 million in fiscal 2005 and $86.5 million in fiscal 2006. (2) Gross profit increased from $28 million in fiscal 2005 to $30.4 million in fiscal 2006. (3) Cost of sales increased from $46.5 million in fiscal 2005 to $56.1 million in fiscal 2006. (4) A gain of $1.7 million on Sale of Corporate Headquarters. (5) Class Action Settlement of $2.7 million proceeds. Problem: Based on the given information, determine the appropriate income statement presentation (sales, cost of sales, gross profit, operating income or expense, non-operating income or expense). A statement of the problem/issue/question: What rules or standards are in effect that give consideration to the separate presentation of product and service revenue and related cost of revenue? In your opinion, why is these rules or standards in effect? Based on your decision with respect to the presentation of sales on the income statement, how should “cost of product” be represented? Why is gross profit typically calculated and presented on income statements? What decision-useful information does gross profit convey? Is gain on the sale of a productive asset typically a component of operating income? Should settlement’s such as that described in this case be considered...
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...Housman's "To An Athlete Dying Young" A. E. Housman's "To an Athlete Dying Young," also known as Lyric XIX in A Shropshire Lad, holds as its main theme the premature death of a young athlete as told from the point of view of a friend serving as pall bearer. The poem reveals the concept that those dying at the peak of their glory or youth are really quite lucky. The first few readings of "To an Athlete Dying Young" provides the reader with an understanding of Housman's view of death. Additional readings reveal Housman's attempt to convey the classical idea that youth, beauty, and glory can be preserved only in death. A line-by-line analysis helps to determine the purpose of the poem. The first stanza of the poem tells of the athlete's triumph and his glory filled parade through the town in which the crowd loves and cheers for him. As Bobby Joe Leggett defines at this point, the athlete is "carried of the shoulders of his friends after a winning race" (54). In Housman's words: The time you won your town the race We chaired you through the market place; Man and boy stood cheering by, And home we brought you shoulder-high. (Housman 967). Stanza two describes a much more somber procession. The athlete is being carried to his grave. In Leggett's opinion, "The parallels between this procession and the former triumph are carefully drawn" (54). The reader should see that Housman makes another reference to "shoulders" as an allusion to connect...
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...A.E. Housman : “ To an Athlete Dying Young” Alfred Edward Housman formally known as A.E. Housman was born on March 26th 1829 and died April 30th 1936. Housman lived in Valley House Bromsgrove UK. He was born to parents Sarah Jane and Edward Housman who married on June 17th ,1858 . Housman was the eldest of seven children and they were raised Christian . He was baptized on April 21 ,1859 at Christ church. Sadly shortly after his mother died on his twelfth birthday. His father who was a county solicitor soon after remarried to one of his elder cousin ,Lucy. Housman made a huge impact on the literature world of his time. It’s no secret that Housman was best known for his profound realization of life. He wrote countless quotes and poems which,...
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...A. E. Housman's "To an Athlete Dying Young," also known as Lyric XIX in A Shropshire Lad, holds as its main theme the premature death of a young athlete as told from the point of view of a friend serving as pall bearer. The poem reveals the concept that those dying at the peak of their glory or youth are really quite lucky. The first few readings of "To an Athlete Dying Young" provides the reader with an understanding of Housman's view of death. Additional readings reveal Housman's attempt to convey the classical idea that youth, beauty, and glory can be preserved only in death. A line-by-line analysis helps to determine the purpose of the poem. The first stanza of the poem tells of the athlete's triumph and his glory filled parade through the town in which the crowd loves and cheers for him. As Bobby Joe Leggett defines at this point, the athlete is "carried of the shoulders of his friends after a winning race" (54). In Housman's words: The time you won your town the race We chaired you through the market place; Man and boy stood cheering by, And home we brought you shoulder-high. (Housman 967). Stanza two describes a much more somber procession. The athlete is being carried to his grave. In Leggett's opinion, "The parallels between this procession and the former triumph are carefully drawn" (54). The reader should see that Housman makes another reference to "shoulders" as an allusion to connect the first ... ... middle of paper...
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...THE BLACK BUSINESSMAN: OBSTACLES TO HIS SUCCESS Author(s): DEMPSEY J. TRAVIS Source: The Black Scholar, Vol. 4, No. 4, THE NEW BLACK BOURGEOISIE (January 1973), pp. 19-21 Published by: Paradigm Publishers Stable URL: http://www.jstor.org/stable/41163617 . Accessed: 08/07/2014 00:10 Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, available at . http://www.jstor.org/page/info/about/policies/terms.jsp . JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact support@jstor.org. . Paradigm Publishers is collaborating with JSTOR to digitize, preserve and extend access to The Black Scholar. http://www.jstor.org This content downloaded from 35.8.11.2 on Tue, 8 Jul 2014 00:10:37 AM All use subject to JSTOR Terms and Conditions THE BLACK BUSINESSMAN: OBSTACLES TO HIS SUCCESS by DEMPSEY J. TRAVIS black businessman, at some on between time,reflects the disparity he the effort puts into his businessand the whichhe obtains compared whites as results to in the same business. matter No how hardhis employees work nor how successful the business is, production and profitsremain small and insignificant the scale of total on and racist American businesses because racism whitesfrom...
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...ST 4 April 5th In 1998, Netflix started an American, DVD- through mail service, where they rented and sold DVD’s one at a time. It was founded by Marc Randolph and Reed Hastings. The company then acknowledged that this business was in very high demand and then switched to a subscription model that would allow a customer to rent a precise number of DVD’s per month. This only lasted six months, when Netflix realized what the customers really wanted was an unlimited subscription model. In 2007, Netflix began streaming movies. Netflix has placed itself as a convenient, great choice of content and affordability entertainment option for customers who are interested in movies and TV-shows. It is now considered one of the biggest provider of streaming movies and TV-series. In 2013, Ted Sarandos, Netflix’s Chief Content Officer told GQ “The goal is to become HBO faster than HBO can become us”. Netflix has indeed been implementing diverse multi-product by creating very popular TV series and Award winning shows like Orange is the New Black and House of Cards. What is truly setting them apart is their new focus on creating movies that their customers can watch at their convenience at their own home without having to go the theaters and pay for the ticket, the popcorn, a drink among other food items Netflix is now hoping to win an award for its new original movie “Beast of No Nation “staring Idris Elba will begin running in a few of the United States http://www.fool.com/investing/general/2015/09/30/how-netflix-inc-really-creates-value...
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...Martini Drive 1990 Hull S90 LM0 England 13 March 2013 PRESS RELEASE FOR IMMEDIATE RELEASE Contact: Syed Muhammad Abbas Ali Press officer of Acme (0044) 25676949 syed_acme@press.com Acme brewery is the hope of Hull The city Hull is known for its many social problems and the town brewery is known for its lack of order fulfilments. That’s why the new owners of Acme are going to improve the city. HULL, MARCH 2013 --- The people of Hull are celebrating, because of the rapid expansion of the Acme brewery. The city has gotten a new voice since the American company US Beverages bought Acme. It is the new owners hope, that the company’s products will go overseas to other markets. The company has moved its premises, from a docks area to a greenfield site. This makes it possible for the company to expand its limits. There are also more job opportunities than before, which will benefit the people of Hull. There used to be a lot of social problems in the city and people had no control over their lives. Therefore the Mayor decided to sell the brewery in hope of it becoming Hull’s rescue. The Mayor of Hull says: “ If the city had continued like this, people would have moved to other places. But because of US Beverages, who made Acme a bigger name than it was a year ago, we have a future. The people will have more opportunities and these will help our city in the long run. This is all possible because of the new Acme brewery.” ---------------------------------------------...
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...Company Overview Netflix has given rise to the new way viewers access their television. The company provides its customers a mail DVD and/or streaming media service for a low monthly subscription. The company’s successes is attributed mostly by its site, Netflix.com. The site allows audiences to view their media through access to a library of near unlimited movies and shows. Business Strategy Netflix’s biggest advantage over its competitors is that it has offered its own largely successful shows, such as House of Cards and Orange is the New Black. These shows are not released like the typical week to week basis, but rather each season is released all at once. "What we’re seeing actually is the breakup around traditional broadcasting models around genres as much as anything else,” says Matt Locke of Story Things Media Company. [1] This new format of viewing shows has given rise to what is known as “binge watching,” where consumers watch entire seasons at a time. Before this, viewers would have to patiently wait weeks at a time to watch their favorite shows and would be out of luck if they happened to miss it. Netflix is constantly pursuing new ways to offer the customer more and providing a first in the market. On January of 2015, Sony and Netflix partnered to release The Interview movie after only one month of its release. Global Presence "It’s going to take another couple of decades to disrupt the current business models, but I would never bet against audiences changing...
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...Julia Castilho Beyond the Orange Jumpsuits Orange Is The New Black is a Netflix series, categorized as a comedy-drama where language and inappropriate content are not an issue. Orange Is The New Black, also known as OITNB, is a TV show that revolves around Piper Chapman. Piper is sentenced to fifteen months at a women’s federal prison for transporting drug money from an international drug cartel that was organized by her former girlfriend, Alex Vause (“Orange Is the New Black”). The incident, which Piper is sentenced for, happened ten years prior to the start of the TV show. By the time Piper’s past has caught up with her, she had already moved on; she got engaged and had an upper middle class lifestyle in New York City and ready to start her brand new life. Unfortunately, before all that can happen, Piper has to go to Litchfield, the female prison, which is now her new home. OITNB portrays the lives of many inmates, including Piper, before and during prison, showing their transformations through time. The first episode of season one, Piper gets ready to surrender at Litchfield. She faces the difficulties on being the new inmate - having no money, no privileges, and no respect from the other convicts. Watching this TV show makes viewers wonder if life in female institutions is as severe as Litchfield. Orange Is The New Black is based off the memoir of Piper Kerman and her experience in prison, which makes the show as realistic as possible. The first episode of season...
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...Step One: Identify the Issues or Problems Issue One: Determine whether L & L should combine service and product revenue, or if it is necessary to disclose separate revenue for both segments, as well as determine if the costs associated with each segment should be separated or combined. Issue Two: Determine if depreciation should be included in the cost of sales or overhead. Issue Three: Determine whether a Gain of Sale of Corporate headquarters is recorded as on ordinary gain, unusual gain, or a discontinued operation. Issue Four: Determine if a lawsuit settlement is recorded as an unusual or extraordinary item Step Two: Collect the Evidence Citation Diagram: Keyword | Reference Descriptions | Citation | Revenue | Net Sales and Gross Revenues | ASC 225-10-S99-2 | Depreciation | Depreciation And Depletion Excluded From Cost Of Sales | ASC 225-10-S99-8 | Settlement Lawsuit | Cash Flows from Operating Activities | ASC 230-10-45 | Extraordinary Item | Extraordinary and Unusual Items | ASC 225-20-45 | Property, Plant & Equipment | Gain on Sale of Property, Plant & Equipment | ASC 605-40-25 | Summary of Literature/Interpretive Response: Issue One: Reg. S-X, 210.5-03 states if income is derived from more than one of the subcaptions described under § 210.5–03.1, each class which is not more than 10 percent of the sum of the items may be combined with another class. If these items are combined, related costs and expenses as described under § 210...
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...L&L Classified Information Lads and Lassies (L&L), an SEC registrant, has its year end on the Saturday closest to January 31. Fiscal 2012, 2011, and 2010, which include 52 weeks each, ended on January 28, 2012, January 29, 2011, and January 30, 2010, respectively. L&L manufactures and sells exclusive children’s clothing to the most discerning clientele. Its products offer high quality and modern style, including everything from a colorful collection of cashmere sweaters to perfect vintage washed tees. The products are sold through its boutiques, each of which resembles a New England seaside cottage. The boutiques also include the Sassy Spa for Spoiled Pip-Squeaks (Sassy Spa), which was introduced in the third quarter of fiscal 2011. These spas for children offer hair and nail care, make-up application, massage services, and even etiquette classes. L&L has the following information that needs to be analyzed to determine the appropriate income statement presentation. 1. Net Sales L&L had net sales of $74.5 million in fiscal 2011 and $86.5 million in fiscal 2012; an increase of $12 million, or 16.1 percent. The increase in net sales was driven, in part, by an increase in revenue from services provided by Sassy Spa, which increased from $3.9 million in fiscal 2011 to $11.2 million in fiscal 2012. The remaining increase in total net sales of $4.7 million was because of an increase in the average transaction value, driven by higher average retail sales...
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...The fashion industry has always challenged stereotypes. When gender norms are challenged, it becomes a hot topic of discussion. The designers of Gucci & Yves Saint Laurent, Alessandro Michele and Hedi Slimane respectively have been dressing lads like lassies (and vice versa) for several seasons. Last month, Louis Vuitton’s designer, Nicolas Ghesquiere, signed up the 17 year old Hollywood actor, Jaden Smith to star in the advertising campaign for their recently launched ‘Series 4’ womenswear collection for Spring-Summer 2016. Jaden Smith has been very proactive in breaking the Gender Barriers in fashion. Not only did he feature in Louis Vuitton’s Advertising campaign for their SS16 womenswear collection, but has also been quite active on social...
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...Irvine Welsh Trainspotting IRVINE WELSH works, rests and raves in Edinburgh. He has had a variety of occupations too numerous and too tedious to recount. Trainspotting was his first novel and he has also published a collection of short stories, a novella entitled The Acid House and a second novel, Marabou Stork Nightmares. IRVINE WELSH TRAINSPOTTING Minerva Thanks to the following: Lesley Bryce, David Crystal, Margaret Fulton–Cook, janice Galloway, Dave Harrold, Duncan McLean, Kenny McMillan, Sandy Macnair, David Millar, Robin Robertson, Julie Smith, Angela Sullivan, Dave Todd, Hamish Whyte, Kevin Williamson. Versions of the following stories have appeared in other publications: 'The First Day Of The Edinburgh Festival' in Scream If You Want To Go Faster: New Writing Scotland 9 (ASLS), 'Traditional Sunday Breakfast'in DOG (Dec, 1991), 'It Goes Without Saying' in West Coast Magazine No. 11, 'Trainspotting at Leith Central Station' in A Parcel of Rogues (Clocktower Press), 'Grieving and Mourning In Port Sunshine' in Rebel Inc No. 1 and 'Her Man, The Elusive Mr Hunt' and 'Winter In West Granton' in Past Tense (Clocktower Press). The second part of 'Memories of Matty' also appeared in the aforementioned Clocktower Press publication as 'After The Burning'. Contents KICKING – – * THE SKAG BOYS, JEAN–CLAUDE VAN DAMME AND MOTHER SUPERIOR; JUNK DILEMMAS NO. 63; THE FIRST DAY OF THE EDINBURGH FESTIVAL; IN OVERDRIVE; GROWING UP IN PUBLIC; VICTORY ON NEW YEAR'S DAY; IT GOES WITHOUT...
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