retiring dentist and has been successful in his practice considerably. However‚ he now faces a management problem of motivating his employees who are suffering from low morale and do not seem to be working as hard as they could to help increase the revenue of the clinic. Dr. Perry‚ had attended a dental conference in Chicago in 2005‚ and recalled two approaches to profit sharing which would help in motivating the employees. He now faces the dilemma as to which one of the two pay structures would be
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Apple Reports Second Quarter Results Best March Quarter Revenue and Earnings in Apple History CUPERTINO‚ California—April 22‚ 2009—Apple® today announced financial results for its fiscal 2009 second quarter ended March 28‚ 2009. The Company posted revenue of $8.16 billion and a net quarterly profit of $1.21 billion‚ or $1.33 per diluted share. These results compare to revenue of $7.51 billion and net quarterly profit of $1.05 billion‚ or $1.16 per diluted share‚ in the year-ago quarter. Gross
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closely dependent on the growth of its earnings per share‚ a main indicator which investors used to invest in a company. b. Step-1: Massaging the numbers or income smoothing Business managers can control the timing of some expenses and sales revenue to some extent and therefore boost or dampen recorded profit for the year. In this way managers ”put a thumb on the scale”‚ the scale being net income for the year. When managers cross the line and go too far it’s called cooking the books. Cooking
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Liquidity Ratios 2012 2011 Current Ratio 20‚025/24‚025=0.83 17‚003/27‚075=0.63 Quick Ratio (7‚138+10‚744)/24‚025=0.74 (6‚252+9‚259)/27‚075=0.57 Activity Ratios Receivable Turnover 46‚417/((10‚744+9‚259)/2)=4.6 45‚884/((9‚259+8‚784)/2)=5.1 Inventory Turnover 31‚546/((486+537)/2)=61.7 30‚814/((537+433)/2)=63.5 Profitability Ratios Rate of Return on Assets 7‚003/((139‚576+151‚220)/2)=4.8% 7‚870/((151‚220+156‚985)/2)=5.1% Rate of Return on (7‚003-56)/((78
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CASE STUDY 3 SEC STAFF ACCOUNTING BULLETIN 104-REVENUE RECOGNITION Required: 1. Access the SEC website‚ www.sec.gov‚ and open the Staff Accounting Bulletin (SAB) section to SAB104. Disregard the first 8 pages. 2. List the 4 criteria which the SEC decided was necessary to further clarify the basic revenue accounting concepts of “realized or realizable and earned”. • Persuasive evidence of an arrangement exists • Delivery has occurred or services have been rendered • The
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its liberal revenue recognition policies. Currently this company recognizes revenue on product sales upon written acceptance of the product. However‚ acceptance typically occurs prior to the configuration of a particular system being finalized or payment being received from the customer. According to the Generally Accepted Accounting Principles (GAAP)‚ revenue should be recognized when a transaction occurs and 1) the revenue is realized or realizable and 2) the revenue is earned. Revenue is generally
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Should Main Line’s maximum and minimum lost profit amounts be revised downward for the following? Why? a. The domestic distribution revenues of $3 million because the deal had not been finalized. Answer: No‚ the amounts should not be revised due to the fact that this amount was an estimate of future cash flows from domestic distribution. Just because the deal had not been finalized does not matter in this instance. b. The $800‚000 of foreign pre-sales because
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(b) P – Simple to set up and maintains control with owner (c) C – Easier to transfer ownership and raise funds‚ no personal liability BE 1-2 1. Trying to determine whether the company complied with tax laws. (E) Internal Revenue Service 2. Trying to determine whether the company can pay its obligations. (C) Creditors 3. Trying to determine whether an advertising proposal will be cost-effective. (B) Marketing Manager 4. Trying to determine whether the company’s net income
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resulted in the highest total revenue‚ despite having a lower nightly profit than other options. This strategy batched the restaurant patrons in groups of eight from open to 7pm and 7pm to 8pm. From 8pm to 10:30pm‚ patrons were batched in groups of four to eight. This strategy helped keep customers in the bar longer in the earlier hours‚ resulting in increased drinks revenues. Not batching customers decreases the efficiency of the restaurant‚ thus decreasing overall revenues. Batching allows customers
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performance in a competitive market area. This report consists of two main sections. First section is to analyse the objectives‚ strategies and outcomes of the business for first three years in detail. Secondly‚ a financial analysis such as total revenue and net income analysis will be done through different data graphs. 2. Overview of Business Plan for the last three years 2.1. Positioning and Mission statement Hotel positioning Crystal Hotel is positioned as a quality 3-star hotel. It
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