Wareham SC Systems, Inc.
1. What is (are) Wareham’s current revenue recognition policy (ies)?
2. Using the limited information in the case, do the industry characteristics or the current revenue recognition policies encourage manipulation of revenues? If so, how could Wareham manipulate its earnings?
3. For each of the specific contracts described in the case, please describe the best revenue recognition policy considering the criteria in SAB 101. (Onsetcom, Cataumet, Sandham, XLSemi, Technical Devices and Ashaban)
Note Exhibit 3, Year 2 cash flows, the “add total change in cash” is an incorrect number. It should be $1,371,350.
1. What are the revenue streams…show more content… 3. Given the use of each resource in the sales fulfillment cycle, determine the profitability of each customer.
4. What should Dakota do based on the information you determined?
Anwar Aluminum Works
1. What are the advantages and disadvantages of AAW accepting each customer order?
2. Calculate the contribution margin rate for each product order
3. Determine the return on investment for each order based on the relevant cash flows?
4. Are there other considerations or calculations that should be taken into account before a final decision is made?
5. What is your decision and why did you come to that conclusion?
Tots R Us
Answer questions 1, 2,4,5,6, and 7
Hint: For question one, assume that there are two cost pool; Building $216,000 and everything else $121,000.
Component Technologies (Required)
Answer questions 1a, 1b, 1c, 2, and 3.
What would you recommend that Component Technologies do?
Note: 1993 is the base year for your analysis in Questions 1a, 1b, and 1c
Healthy Life Group (Required)
1. Complete of SWOT analysis of the proposed project
2. Complete an income statement, balance sheet and statement of cash flows for 2011. Please provide information on any assumptions you make not already stated in the case.
3. Complete an income statement, balance sheet and statement of cash flows for 2011 assuming that sales projects were 20% lower
4. Based on the analysis and financial statements, should the Larson’s