5x=191‚250‚000 X=127‚500‚000 d. How much revenue does Biovail get from a single pill ? 400% 35% $2.83 Biovail → Distributor → Wholesaler → Retailer 0.52 ← 2.10 / 400% ← 2.83/1.35%=2.10 127‚500‚000 x 0.52= $6‚630‚000 One truck can definately carry $10 million worth of Wellbutrin XL tablet product. 2. How should the company recognize revenue based upon the two possible FOB contract structures mentioned in the case? Since Biovail’s stock is publically owned it needs to file
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Hurricane Katrina was a natural disaster that had never been experience in the history of the United States. Therefore‚ we as Americans could only hope that we had efficiently plan for the worst‚ and expect the best outcome. As it turns out‚ August 29th‚ 2009 the worst did in fact happen‚ and America as a whole was less than prepared. A Category 5‚ Hurricane Katrina ultimately devastated the lives of millions of Americans‚ costing billions of dollars in damage and changing the way we viewed our reliability
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Table of Contents 1.0 INTRODUCTION Biovail Corporation was one of the Canada’s largest pharmaceutical publicly traded companies which expert in the development and large scale of manufacturing of pharmaceutical products. Biovail Company engaged activities on enhance formulate of the existing drugs‚ clinical testing‚ manufacture and commercial pharmaceutical products and utilized advanced drug delivery technologies. In the case‚ on September 30‚ 2003 there was a truck carrying a shipment
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Biovail Corporation Issues : 1) The company has the problem with their recognition of the profit Whether they should realize or not the revenue for the third quarter. 2) Issues on the concepts of revenue recognition that have been apply in the company to show their financial results. Whether Biovail Corporation recognize its revenue using FOB shipping point or FOB destination. Suggested Solution 1) FOB Destination shipping term The truck accident had no impact on company’s third quarter
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Executive Summary Biovail Corporation‚ a major Canadian pharmaceutical company listed on the New York Stock Exchange‚ announces that it will miss its quarterly earnings target by $25 to $45 million‚ blaming $10 to $15 million of the shortfall on a truck accident involving a shipment that left its facility on the last day of the quarter. The case was ultimately prosecuted by the U.S. Securities and Exchange Commission (SEC). The case is centered on the question of revenue recognition
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each tablet takes up is 1.5cm^3‚ so a truckload can fit 191‚250‚000cm^3/1.5cm^3=127‚500‚000. 3‚533‚569/127‚500‚000=.028 truckloads. 2. How should the company recognize revenue based upon the two possible FOB contract structures mentioned in the case? Why? If the shipping terms are FOB Shipping Point‚ the company recognizes revenue for the products shipped as soon as the products ship to the customer. This is because‚ per the contract‚ the title of the product shifts to the customer at shipping
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Q1. |CALCULATION FOR NO DRUMS REQUIRED | |ONE GALLON= |3785.4CC | |ONE DRUM CAPACITY =64 GALON IN CC |242265.6 | |SALE PRICE OF ONE TABLET=
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structures mentioned in the case? According to GAAP‚ four conditions must be met in order to recognize revenue: 1. Persuasive evidence of an arrangement exists: although the case does not provide extra information on this aspect‚ it seems clear that there is an ongoing relationship between Biovail and the Distributor and that certainly there was a bill‚ purchase order and/or invoice in order to support this sale. 2. Seller’s price to the buyer is fixed or determinable: the case provides clear evidence
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Human Resource Management: Worst Case Scenario “Human resource management (HRM) is the process of employing people‚ training them‚ compensating them‚ developing policies relating to them‚ and developing strategies to retain them” (Dias‚ 2013‚ pg. 8). To sum it up‚ HRM is one of the most critical aspects of maintaining a successful business organization. By utilizing effective HRM practices an organization is able to plan‚ organize‚ lead‚ and strategically control its employees into being more
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Table of Contents 1.0 Abstract Biovail Corporation‚ a large pharmaceutical company and had applied advanced drug-delivery technologies to improve the clinical effectiveness of medicines. It is recently had its stock downgraded by a well-known pharmaceutical analyst and a number of other analysts were also scrutinizing the company. The outcome was not favorable‚ as Biovail ’s acquisition methods were labeled as unethical and their accounting practices were questioned
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