CHAPTER 5 Merchandising Operations and the Multiple-Step Income Statement ANSWERS TO QUESTIONS 1. (a) Disagree. The steps in the accounting cycle are the same for both a merchandising company and a service company. (b) The measurement of income is conceptually the same. In both types of companies‚ net income (or loss) results from the matching of expenses with revenues. 2. The components of revenues and expenses differ as follows: | | Merchandising | | Service | RevenuesExpenses
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Production and Operations Management Case study: “ Hightec Inc” Date 12th October 2011 Submitted To: Prof .Dr. R. Jagadeesh Submitted by‚ Sec: B‚ Group: 2 BHARADWAJ S (11070) HARSHITH SHETTY (11090) PRASAD KRISHNA (11099) SAGAR CHIMURKAR (11106) SAURABH MANDAL (11108) Contents Executive Summary: ............................................................................................................................... 3 Major Problems:...........................................
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The most concerning issue is the way Live Well Inc. deal with consignment and the recognition of revenue. As Live Well Inc. sells products through another party‚ being the sales coordinators‚ they cannot recognize revenue as the consignment of goods does not constitute a sale. They can only identify the revenue when the consignee sells the goods to a third party. This rule applies to both ASPE and IFRS standards. They currently recognize revenue upon shipment‚ however under the new IFRS 15 guidelines
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Destin Brass Products Problem: - The Company is producing 3 major products – Valve‚ Pump and Flow Controller. The Company is concerned about the price cutting of Pumps going on in the market every month. It is also surprised to see no change in sales of Flow Controller despite 12 ½% increases in prices. Current Scenario: - Currently it is using traditional accounting system‚ Unit of product is charged for material cost‚ labor cost (standard time for labor times the labor pay rate $16 per hour)
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After having received an email from Shannon McDonald (regarding the need to receive a statement of his perspective on recent performance and ideas)‚ Thomas Green is left with several options to choose from to solve the issue at hand. Before discussing these options it is important to describe his first step in taking any one of these decisions. Green must first email McDonald to find out the best time they could meet. For any decision Green decides upon at this point‚ it is important that he communicate
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6.0 Recommendations Acid Test Ratio The acid test ratio shows that Muhibbah have less liquidity which indicates that they holding low amount of cash but high level of inventories .They may have difficulty paying its current liabilities on time. Business is relying on turnover of stock to meet obligations. Here‚ we recommend that Muhibbah should consider level of their accounts payable or paying off their liabilities and ensure the cash flow of the business is optimal meaning that the company must
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INDIAN (3 recommended restaurants) Restaurant Name: Kebab Bistro offer Cost: 35 AED What to order: - Bistro Parsi Dishes (Dhansaak. Sali boti. Papeta ma ghosh. Curry chaawal. Pulav dal. Khichri kheemo. Vindaloo. bhaji daana ma ghosh. khichri patio. Dhan dal patio) - Bistro eggs plore (Sali par edu. Tamota par edu. Kheema par edu. Egg chutney pattice. Resa par edu) - Bistro parsi starters (Patra ni macci. Mutton pattice. Mutton cutlet. Chicken cutle. Chicken farcha) - Bistro parsi pareji - vegetarian
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Verizon Communications‚ Inc. has many strengths‚ weaknesses‚ opportunities and threats as an organization. This case analysis will highlight the top three for each category and provide a rational for each factor. The SWOT analysis will serve as a tool for identifying alternative strategies for the organization and help define a 3-year growth plan. Various matrices‚ including a SWOT analysis and a Financial Ratios Analysis‚ will also support specific strategies and long-term objectives. Other
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Joc Oil USA‚ Inc. v. Consolidated Edison Company of New York‚ Inc.(Con Ed)‚ is a case that involved 3 parties – Joc Oil‚ Inc.‚ an American oil company who entered into a contract to supply low-sulfur fuel to Con Ed ( the second party) after Joc Oil purchased the low- sulfur fuel from an Italian refinery( the third party). This case According to Cheeseman (2013)‚ the facts of the case indicate that on January 24‚ 1974 Joc Oil entered into a sales contract with Con Ed whereby it was agreed that
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INTRODUCTION Office Supply Incorporated (OSI) is a company in crisis‚ with challenges in its cost structure and poor IT performance. Outsourcing to Technology Infrastructure Solutions (TIS) is an opportunity to both reduce costs and complexity for the firm‚ but first must consider whether outsourcing is a good strategic fit for OSI. Outsourcing is known as the practice of turning over responsibility of some or all of organizations information systems to a foreign firm in order to stay competitive
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