Case 12 04

Powerful Essays
Case 12-04 Hemo-Tech Inc. Part I Hemo-Tech Inc. (“Hemo”) manufactures and sells specialized medical equipment and services to physicians and hospitals. The equipment is used to extract and store blood samples from patients. Hemo is currently marketing its latest equipment model, BIO-07, which includes Hemo’s new patented technology that significantly improves sample collection efficiency and reduces contamination risk to a low level. Hemo is the only company in the United States that sells this type of equipment with the next-generation technology. Hemo’s domestic competitors sell equipment that is largely the same as Hemo’s older equipment model, BIO-02. Hemo entered into a contractual arrangement with Extract Co. (“Extract”). Extract operates several hospitals in Region X. Below is a term sheet that summarizes the arrangement, which also includes various excerpts from the sales agreement.

Equipment and Services Agreement This agreement is effective as of July 1, 20X1 (the “Effective Date”), by Hemo-Tech Inc. (“Hemo”) and Extract Co. (“Extract”). Whereas, Hemo manufactures and sells equipment, model BIO-07, used for extracting and storing blood samples; whereas, Hemo sells related supplies and services; whereas, Hemo agrees to provide such products and services as specified in Article 1 on an exclusive basis to Extract within Region X for a term of five years; and whereas, Extract desires to purchase such products and services in exchange for compensation as specified in Article 2. Article 1: Products and Services 1.1 Equipment. Hemo will deliver five units of BIO-07 (the “Equipment”) to Extract no later than 15 days after the Effective Date. Extract may purchase additional units subject to separately negotiated purchase orders. Each unit will be delivered with five detailed product manuals. 1.2 Equipment Supplies. Hemo will deliver 50 boxes of supplies with the Equipment. Extract may purchase additional boxes at a discount of 33 percent off the list price for

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Professional Accounting I Assignment #2 1. For the equipment Hemo-Tech should use its best estimate of selling price. Since it does not have a price on its own and the two competitors’ sell a different model or the same model to a different set of customers, it must use its best estimate according to 605-25-30-6C. Since the cost to manufacture the equipment including labor, materials, and allocated R&D is known, as well as an estimated markup based on its history of margins as well…

    • 270 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    04

    • 1529 Words
    • 12 Pages

    Module Four Wellness Plan Fill in all logs and answer the reflection questions completely with supporting details. Section 1: Goals Include your goals for each area of wellness before completing the reflection question. 1. 1. Physical- I will be able to lift 75 pounds. 2. 2. Social- I will go to more of the gatherings in my community. 3. 3. Emotional- I will set aside at least two nights a week to spend time with my family. 4. 4. Academic- I will be more focused and try my hardest in school. Goal…

    • 1529 Words
    • 12 Pages
    Powerful Essays
  • Satisfactory Essays

    04

    • 4586 Words
    • 34 Pages

    created at the table level. ANS: T PTS: 1 REF: 96 10. The CONSTRAINT keyword is required if the user is going to assign a name to a constraint. ANS: T PTS: 1 REF: 94 11. A constraint is always enforced at the table level. ANS: T PTS: 1 REF: 95 12. The table level approach can be used to create any constraint, except a CHECK constraint. ANS: F PTS: 1 REF: 94 13. A PRIMARY KEY constraint will make certain the column designated as the primary key does not contain a NULL value. ANS: T PTS: 1…

    • 4586 Words
    • 34 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Case 12

    • 331 Words
    • 2 Pages

    CASE 12 HOME DEPOT Analysis What do the financial ratios in case Exhibit 7 tell you about the operating performance of Home Depot? What additional information do the different ratios provide? Complete and compare a similar analysis for Lowe’s. a. Growth ratios are going down, loosing sales. Profitability ratios are declining after 1999 so that is not a good sign. Turnover rates seem to stay constant which means that they are selling the products at a constant rate. b. If their…

    • 331 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Case 12

    • 328 Words
    • 1 Page

    Case 12: Banned If You Do, Banned If You Don’t 1. The firm obviously needs to make a decision on the matter but at the same time they must try to appease both parties. As such, the firm should first take into effect both parties reasons and facts before going any further. After management has decided which party offers a stronger argument they should then try to make a decision that not only favors the stronger party but also takes into consideration the weaker party’s arguments and makes accommodations…

    • 328 Words
    • 1 Page
    Satisfactory Essays
  • Good Essays

    case 12

    • 1909 Words
    • 5 Pages

    Hoang Thi Thanh Ha - 13200154 Case 12-2 To Recognize or Not to Recognize, That Is the Question Shakespeare Inc., a private publishing company issued its F/S on March 20, 2012. There were several accruals and events that the management of Shakespeare is considering to determine if they should be recognized or disclosed in Dec 31, 2011 F/S. In my opinion, the important things to focus on subsequent events are the period they effect and if their influence is material or not, so that in conclusion…

    • 1909 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    Case 04-7 Lighthouse

    • 3560 Words
    • 15 Pages

    I. Succint Lighthouse provides a ship tracking service for shipping companies to locate their ships at sea, as well as knowing their speed and the weather they are facing. Lighthouse does a contract for the delivery and installation of the physical device that is capable of achieving this through a tracking service that calls for a second contract. The price for the dedicated hardware (exclusive to Lighthouse services) and installation is a single nonrefundable amount of $10,000 payable at completion…

    • 3560 Words
    • 15 Pages
    Powerful Essays
  • Good Essays

    Case 12

    • 679 Words
    • 3 Pages

    Case 12.4 1. Mark can ask George for his plans on continuing the company for over a year. The plans must be shared in the form of a financial statement and assuming the plans are adequate, Mark can provide feedback through notes on the mitigating factors. If the disclosed information does not meet the criteria Mark was looking for, then he should ask George to provide the notes for the shared financial statements which identify the doubts that he has about the growing concern assumption. Assuming…

    • 679 Words
    • 3 Pages
    Good Essays
  • Good Essays

    12 Case

    • 690 Words
    • 5 Pages

    Organizational Behaviour Case Study PART A BACKGROUND INFORMATION COMPANY STRUCTURE HISTORY The XYZ Company began its operations in 1988. Soon after its formation it entered the field of Information Technology and Telecommunications by developing and distributing IT and telecom equipments. It became the market leader in 2000 representing the most important companies in these sectors such as Microsoft, Hewlett Packard, Compaq, IBM, Lucent Technologies (AT&T), Oracle, Wipro and Novell.…

    • 690 Words
    • 5 Pages
    Good Essays
  • Good Essays

    Case 12

    • 786 Words
    • 4 Pages

    strategy implemented by its famed Skunk Works operation that handled top-secret classified projects. - See more at: http://businessthinker.com/lockheed-tri-star-redux-a-play-to-win-strategy-v2/#sthash.td10My9L.dpuf A synopsis of the facts of the case is as follows: The L1011 Tri-Star is a wide-body commercial aircraft with a capacity of up to 400 passengers. Lockheed was late to enter the market due to jet engine production delays by Rolls Royce (sole supplier for the Tri-Star). In the early 1970s…

    • 786 Words
    • 4 Pages
    Good Essays