model current available. In addition to footwear, Crocs also owns the Jibbitz brand, a unique accessory product-line with colorful snap-on charms specifically suited for Crocs shoes. Traditionally, footwear sales make up approximately 96% of total revenues with roughly 75% of sales geared towards adults. The company distributes its footwear and accessories primarily through wholesale
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reasons. First of all, Microsoft's software capitalization policy and revenue recognition policy make it have a lower reported book value of equity. Microsoft expensed all incurred research and development costs in which some should have been capitalized. This accounting treatment resulted in lower earnings, lower retained earnings and lower book value of equity. Meanwhile, in 1996 Microsoft began recognizing 20% of revenues from Windows operating systems over the products life-cycle rather than
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means process of reporting an asset, liability, income, or expense on the face of the financial statements of an equity. a. Auditing b. Realization c. Recognition d. Measurement *Answer: C- Recognition 3. Which one is not a general feature of financial statement? a. Offsetting b. Accrual basis c. Consistency of presention d. Recognition of expenses *Answer: D 4. User who is a provider of risks capital and their advisers are concerned with the risk inherent in and return provided by
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confusing to shareholders and analysts. In addition, it’s complex business model and unethical practices required that the company use accounting limitations to misrepresent earnings and modify the balance sheet to indicate favorable performance. Revenue Recognition: Enron was originally Services providing company such as wholesale trading and risk management in addition to building and maintaining electric power plants, natural gas pipelines, storage, and processing facilities. The Business Model used
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ISSUES IN ACCOUNTING EDUCATION Vol. 28, No. 4 2013 pp. 983–1007 American Accounting Association DOI: 10.2308/iace-50497 Second Round Electronics: A Case for Critical Thinking Nathalie Johnstone, Brandy Mackintosh, and Fred Phillips ABSTRACT: This instructional case requires students to provide advice to a client who is currently the sole owner of a for-profit company that reconditions and sells used electronics. The client is considering purchasing a similar company with the vision of expanding
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to draw conclusion on this analysis itself, as it can mislead without any context. It is always important to have both company background information, and the aid of other analyses such as ratios to help form a complete picture. Income Statement Revenue Sections: From the income statement one of the most visible changes is both strength and a weakness. The jump in Net Sales from FY6 to FY7 (up 33%) is very substantial indicating a growth year for the company and a very positive result. Net sales
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made at the end of an accounting period which transfer the balances of temporary accounts to permanent accounts. Closing entries are based on the account balances in an adjusted trial balance and the reason closing entries are prepare is when the revenue, expense, and drawing accounts, Dividend, Drawings or Withdrawals Accounts, Income Summary Account(the temporary accounts) are closed, their balance returns to zero in preparation for the new accounting period. Trial balance is the process of totaling
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Here are the resources I use from internet. http://www.improvemybusiness.com.au/improve-cash-flow/professional-services/cash-inflow-cash-outflow-managing-your-business-cash-flow http://www.csun.edu/~hfact004/inventory_cost_flow_assumptions.htm Ideally, a company will have more money flowing into the business than out. Businesses sell products and services to generate income. Generally, the most common sources of cash for a company are: payment for goods or services from customers, receipt of
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performance since the company went public in June of 1992. Top line revenue was up 12% to 2.526 billion, operating income fell 26.1% to 178.2 million and net income fell 21% to 108.7 million. However, these numbers do not stand alone. One must analyze the financial information further to get a better understanding of the strengths and weaknesses of the entire SBUX business model. First, a key number is the percentage of revenue that is generated from company owned stores (I also call them company
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Andrew Wanda Professor Joan Vilim Strategic Management 3-17-15 Under Armour Case Study Under Armour was founded by Kevin Plank a former collegiate football player at University of Maryland. Being an athlete and having to wear heavy sweaty shirts from playing he came up with an idea for a fabric that is cooler and comfortable to the athlete. He had passed on a job opportunity out of college and decided to take his idea and sell t-shirts instead. From what started as just a t-shirt idea
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