...Case 09-6 UpBeat Inc. Tommy Toe, the controller of UpBeat Inc., a successful company located in Greenville, S.C., was whistling. Sales in the last quarter substantially exceeded budgeted amounts, and the order backlog indicated that the next quarter would be even better. All of a sudden, Tommy frowned. When he reviewed the monthly reporting package and cash flow projections, he noticed that the debt-to-equity ratio had deteriorated. This poses a problem under UpBeat’s debt covenants. In addition, at present liquidity is tight, and the company is having difficulty keeping current on taxes and on payments to suppliers and employees. Tommy immediately called UpBeat’s local bank. The bank manager recommended that UpBeat sell off some of its accounts receivable to increase its liquidity and improve its debt covenant ratios. Because there are no markets for receivables of this sort, UpBeat agreed to sell the bank $50 million of accounts receivable at 90 percent of face value. The following provisions are included in the sale agreement: • Transfer Provision 1 — The bank has to obtain permission from UpBeat if it decides to sell/pledge the accounts receivable, which UpBeat could not unreasonably withhold. Transfer Provision 2 — UpBeat has the option to repurchase the accounts receivable at a fixed price if it obtains sufficient liquidity from new investors or other sources. • Tommy knows that legal isolation is often an issue in sale accounting and that often U.S. GAAP requires...
Words: 382 - Pages: 2
...Case 09-6 UpBeat Inc. Tommy Toe, the controller of UpBeat Inc., a successful company located in Greenville, S.C., was whistling. Sales in the last quarter substantially exceeded budgeted amounts, and the order backlog indicated that the next quarter would be even better. All of a sudden, Tommy frowned. When he reviewed the monthly reporting package and cash flow projections, he noticed that the debt-to-equity ratio had deteriorated. This poses a problem under UpBeat’s debt covenants. In addition, at present liquidity is tight, and the company is having difficulty keeping current on taxes and on payments to suppliers and employees. Tommy immediately called UpBeat’s local bank. The bank manager recommended that UpBeat sell off some of its accounts receivable to increase its liquidity and improve its debt covenant ratios. Because there are no markets for receivables of this sort, UpBeat agreed to sell the bank $50 million of accounts receivable at 90 percent of face value. The following provisions are included in the sale agreement: • Transfer Provision 1 — The bank has to obtain permission from UpBeat if it decides to sell/pledge the accounts receivable, which UpBeat could not unreasonably withhold. Transfer Provision 2 — UpBeat has the option to repurchase the accounts receivable at a fixed price if it obtains sufficient liquidity from new investors or other sources. • Tommy knows that legal isolation is often an issue in sale accounting and that often U.S. GAAP requires...
Words: 382 - Pages: 2
... Transfer Provision 1: The bank has to obtain permission from UpBeat if it decides to sell/pledge the accounts receivable, which UpBeat would not unreasonably withhold. It is fair for Upbeat to make the bank agree to obtain permission from UpBeat if it decides to sell/pledge the accounts receivable as long as UpBeat does not unreasonably withhold. UpBeat has no right to constrain the transferee from selling or pledging their assets and cannot make it impossible for the transferee to sell the asset. (860-10-40-18) b. A requirement to obtain the transferor's permission to sell or pledge that is not to be unreasonably withheld Transfer Provision 2: UpBeat has the option to repurchase the accounts receivable at a fixed price if it obtains sufficient liquidity from new investors or other sources. This provision would preclude sale accounting. UpBeat would maintain too much control over the asset if they had the ability to decide when and if at a fixed price they were going to repurchase the asset. Provision two sounds closer to secured borrowing over sale accounting. UpBeat wants to maintain control and the ability to repurchase at a later date, but does not want the obligation to repurchase at a later date with interest attached that secured borrowing would mean. (860-10-40-24) Requirement 2: If both provisions were cancelled then UpBeat would be able to consider the sale of the accounts receivable to the bank under...
Words: 276 - Pages: 2
...The central historical message of this film is that during this time period, people were just beginning to break away from traditional norms and find their own passion and their own path in life. While this wasn't widely accepted at first, it became the forefront for the way that society works today. This was the beginning of people choosing their own careers and making their own choices in life rather than carrying on the family occupation. The music was mainly very melancholy sounds from the classical era, but also included some upbeat ragtime jazz when Jakie began to sing. I thoroughly enjoyed the contrast between the two types of music and it was clear that they played a pivotal role in the film. The sad, slow traditional music would mark the father and his overbearing ora while the upbeat jazz music would indicate the switch to his more lively, independent, and shame free son, Jakie. It was extremely odd for me to watch a film in black and white since I’ve admittedly most likely never done that. I’ve also never seen a silent movie in general. Apparently, this film was a significant piece of history. According to my research, this film was remarkable because it was the first to synch up sound with a motion picture....
Words: 704 - Pages: 3
...Class: Here are some excerpts from the model solution to UpBeat that discuss four possible alternative solutions to the issues raised in this case. Discussion 1 For each of the transfer provisions included in the agreement, determine whether the provision would preclude sales accounting. Alternative 1 — Fail sale accounting criteria because of Transfer Provision 1. ASC 860-10-40-5(b) requires that the bank have the right to pledge or exchange the accounts receivable it received and that no condition both “constrains [the bank] from taking advantage of its right to pledge or exchange [the receivables and] provides more than a trivial benefit” to UpBeat Inc. Transfer Provision 1 (outlined in the case document) indicates that the bank is constrained because it has to obtain permission from UpBeat if it decides to sell or pledge the receivables. This constraint would preclude achievement of the sale criteria under ASC 860-10-40-5(b). Alternative 2 — Fail sale accounting criteria because of Transfer Provision 2. ASC 860-10-40-5(b) requires that the bank have the right to pledge or exchange the accounts receivable it receives and that no condition both constrains the bank “from taking advantage of its right to pledge or exchange [the receivables and] provides more than a trivial benefit” to UpBeat. Because similar accounts receivable are not readily available in the marketplace, the transferee is constrained. The transferee cannot sell the accounts receivable because...
Words: 823 - Pages: 4
...Phoenix Current Ethical Issues In today’s business environment, ethics take a toll far greater than that of previous years. It is more important now than ever that business ensure their ethics program is solid. For Upbeat Financial Service it is important to ensure the six characteristics that build a good solid ethical decision. Trustworthiness, respect, responsibility, fairness, caring and good citizenship are known as the “six pillars of character.” (Josephson, 2002) In this paper we are going to outline the services of Upbeat Financial Services and the moral and ethical issues they face. Upbeat Financial Services is a company that offers financial services and a “One-Stop Mortgage provider.” They offer mortgages at the lowest rates available, credit reports, appraisal, and home inspections upon approved credit. (Placeholder1) Their mission statement is as follows; “Upbeat Financial Services will be the preeminent provider of low cost mortgage services using state-of-the-art technology in the five state areas of Idaho, Montana, Wyoming, North Dakota, and South Dakota. We thank you in supporting our mission!” Upbeat Financial Services offer their clients the most efficient and effective processing of mortgage applications from beginning to end. Not only do they work with families and individuals that are purchasing properties, but they also service professionals looking for a secondary or a primary...
Words: 907 - Pages: 4
...Memorandum TO: FROM: RE: DATE: The purpose of this memo is to determine whether the transfer provisions preclude sale accounting, and if so, would sale accounting be appropriate after the initial transfer if the provision in question was eliminated. UpBeat, Inc. is a successful company located in Greenville South Carolina. Sales have substantially exceeded budgeted amounts and look to get even better. Upon reviewing of the monthly reporting package and cash flow projections it can be noted that the debt to equity ratio has deteriorated, liquidity is tight, and the company is having difficulty keeping current on taxes and on payments to suppliers and employees. In order to meet UpBeat’s debt covenants the local bank has agreed to purchase $50 million of accounts receivables following provisions included in the sale agreement: UpBeat would like assistance in determining whether the transfer provisions preclude sale accounting. Both transfer provisions have the possibility to preclude sales accounting. Transfer provision 1 may allow for UpBeat to retain the benefit by requiring permission to sell the financial assets. It may be inferred by some that because UpBeat cannot unreasonably withhold the sale the benefit transfers to the bank, however, more information is required to properly known exactly what unreasonably withhold means. Transfer provision 2 has the possibility to allow a sale if the fixed price received for the repurchased receivable is a fair value for...
Words: 1769 - Pages: 8
...The second reason why I think “Can’t stop the feeling” is a good song is because it has an upbeat tone and that’s what I have tried to have all year. This song has an upbeat tone and that’s what I tried to have in 8th grade, a positive outlook on things and have an upbeat attitude. Especially when I had tests I did not want to doubt myself so I thought of good things and that’s exactly what the song has, an upbeat positive...
Words: 455 - Pages: 2
...lets talk about rock music. Rock music is very difficult to find differences for. Rock music shares a lot of aspects that each genre can contain. Rock music is the type of music to get peoples blood flowing. The music can either just excite you or it may excite you in a dark way, to where the listener may have dark emotions. Rock music is found at many sporting events. Rock songs are at sporting events to get the crowd going, and many players listen to the rock music because, they find it intimidating to the opponent. Rock music is generally fast and upbeat or slow and dark. A lot of people stereotype rock music to be very violent influenced, upbeat, and loud, although there are many many songs rock songs like that. There are also many slow and dark songs, where the artist will be personal about their music, with a dark mood for the theme of their songs. the song “Been to Hell” is a song with great meaning, dark mood, and upbeat. “Been to Hell’ is performed by Hollywood Undead, and the song is about how everybody goes to Los Angeles to go bick, but it doesn't always work the way expected. The instruments are generally guitars, drums, keyboards, and bass guitars. Next up is country music. Country music is influenced by many people. Many people also stereotype country music to be about farms,trucks, guns, hunting, and beer. Although many of the country songs do contain those aspects. Country songs can have good meanings to them. The song “Letter to Me” is a song with a great meaning...
Words: 618 - Pages: 3
...Prokofiev began composing his sixth symphony before finishing his fifth in 1944, and then completed the symphony in February 1947. The first performance of this work was given in 1947 in Leningrad. To the listener the sixth symphony appears to be more emotionally complex and highlights more the subtlety that was not as prominent In his wildly successful fifth symphony. The Central committee of the Communist Party and Stalin’s musical authority, issued a declaration condemning the works of Prokofiev on February 11, 1948. As a result of this declaration, the sixth symphony was put aside shortly after its premier. The piece and composer were denounced for creating “anti-Soviet” art. This piece was not upbeat and enthusiastic enough for the Soviet party. These characteristics highlight the contrasts between the fifth symphony, which was received with great enthusiasm and the sixth symphony. For as long as Stalin lived and was in control Prokofiev could not regain his musical prominence in his home country. Interestingly Prokofiev died less than one hour before Stalin on March 5,1953 so sadly he never saw his musical prominence resurface at home....
Words: 498 - Pages: 2
...The Format of the show kind of unique. The first 15 minutes, it played 2 music back to back and then one 30 second commercial and repeated once more. However after 15 minute mark, it had about 9 commercials non-stop 15 to 30 second playing time each. Following the unending commercials, 9 songs were played non-stop again, each one playing for about 3 minutes. So in total there were total of 18 commercials for about 11 minutes. They advertised auto insurance, school degree programs, loans, cars, sandwiches, chocolate bars and public health message about lung cancer from smoking. They total of 15 songs which 10 of them were very recent hit songs. The time was in the morning so they were mostly playing upbeat songs. I heard couple slower songs but most of them were fast and upbeat. 9 songs were played in a row with nothing in between and I thought that was very unusual. The...
Words: 688 - Pages: 3
...lend an upbeat tone to this week’s five-day gathering in Davos, Switzerland of 2,500 executives, policy makers, investors and academics. Delegates include German Chancellor Angela Merkel and European Central Bank President Mario Draghi, both of whom won praise in the poll. Goldman Sachs Group Inc. (GS) Chief Executive Officer Lloyd Blankfein and billionaire investor George Soros will also be there. “There’s a great sense of relief we dodged a lot of bullets in 2012 -- we didn’t go off the fiscal cliff in the U.S., Europe didn’t have a meltdown and China didn’t have a hard landing,” said Nariman Behravesh, chief economist at IHS Inc. (IHS) in Lexington, Massachusetts, who will be in Davos. “There are definitely pockets of good news with recoveries in North America and parts of Asia gathering momentum.” U.S. economic activity picked up across much of the country last month, boosted by automobile and home sales, the Federal Reserve said on Jan. 16 in its Beige Book survey of business conditions. U.S. Effect The improvement in the U.S. is having a “positive effect throughout the world,” according to Sriram Srinivasan, chief executive officer of Wall Street Investment Management in Chantilly, Virginia, and a poll respondent. The global economy is in its best shape since May 2011, according to the survey, with 35 percent of those contacted saying it is getting better. That’s about twice the number who say the outlook is worsening. European investors were the most upbeat; U.S...
Words: 394 - Pages: 2
...Walk On Water, by 30 Seconds To Mars, is a song that depicts America in every corner. They support showing America by using imagery in their video, and factual details on top of the imagery. The purpose of the piece is to educate and to persuade the audience so that they know more about America and to think differently about it. 30 Seconds To Mars uses a very electrifying tone for the population of America. The music video for Walk On Water, by 30 Seconds To Mars uses a bundle of imagery to depict America in every corner. The video contains numerous of different people from different nationalities in every state speaking to the camera about America and what it means to them. Some of these people include Kendall, and Kylie Jenner and your...
Words: 330 - Pages: 2
...direct reports in a nonverbal manner can mean the difference between success and failure. I will be reviewing some of my experiences in business communication over the last twenty years as it relates to meetings, presentations, and client interactions. When I meet with staff I am always positioning myself in a leadership role. The message will be different and my delivery style must match the message. I also must plan what type of response I am looking for from the meeting? Do I want the receivers to be upbeat, energized, and engaged? Or, is my message more disciplinary and I am looking for understanding and acknowledgement? When meeting with clients is this a sales call? Or is this a service follow up that seeks to resolve an issue? In all these different situations, I must tailor my non-verbal cues in a way that projects I understand the purpose of the meeting. For example, in a sales meeting that is upbeat and seeking to celebrate success my rate of speech is fast-paced, upbeat, and I am smiling. I engage each member with eye contact, my body language is very animated, and the end result is that the receivers can tell that I am pleased with their results. Everyone leaves the meeting feeling good and we get on with the day’s business at hand with energy. Other circumstances sometimes require a different type of delivery style. For example, recently I had to deliver the message that data...
Words: 876 - Pages: 4
...what they were hearing. Jazz spread quickly and was soon spread throughout the south and became popular with all kinds of people. Slaves would sing and doo-wop on their plantations to help pass time. Many believe that this was also partly responsible for the birth of Jazz music. Throughout the jazz era, slavery was in full gear in the south. Within a few years, the civil war broke out. Jazz was not only played for listening pleasure, jazz was played as a way to express feelings and tell stories. This was called the blues. The blues was a form of jazz in which there would be a slow beat and a rhythmic story being told in sync with the beat. The sudden wave of another form of jazz called ragtime brought about mixed feelings. This was upbeat music and caught the attention of many of the younger listeners. This brought on the age of Flappers. Flappers were...
Words: 507 - Pages: 3
