Alan spalding is ceo of a large appliance wholesaler alan

Assignment Help Accounting Basics

Reference no: EM13593978

Alan Spalding is CEO of a large appliance wholesaler. Alan is under pressure from Wall Street Analysts to meet his aggressive sales revenue growth projections. Unfortunately, near the end of the year he realizes that sales must dramatically improve if his projections are going to be met. To accomplish this objective, he orders his sales force to contact their largest customers and offer them price discounts if they buy by the end of the year. Alan also offered to deliver the merchandise to a third-party warehouse with whom the customers could arrange delivery when the merchandise was needed.

1. Do you believe that revenue from these sales should be recognized in the current year?Why or why not?

2. What are the probable consequences of this behavior for the company in future periods?

3. What are the probable consequences of this behavior for investors analyzing the current year?

Reference no: EM13593978

Questions Cloud

Nike inc manufactures a single product thats sells for 180 : nike inc. manufactures a single product thats sells for 180 per unit and its total variable cost is 135 per unit. the

The number of students having computer science as a major : question in a discrete mathematics class every student is a major in computer science or mathematics or both. the

A student rinsed a burette with deionized water but not : a student rinsed a burette with deionized water but not with na2s2o3 before filling the burette with na2s2o3 to

Four seasons industries has established direct labor : four seasons industries has established direct labor performance standards for its maintenance and repair shop. however

Alan spalding is ceo of a large appliance wholesaler alan : alan spalding is ceo of a large appliance wholesaler. alan is under pressure from wall street analysts to meet his

Analysis of a compound containing only c and cl revealed : analysis of a compound containing only c and cl revealed that it contains 33.33 c atoms by number and has a molar mass

Capwell corporation uses a periodic inventory system the : capwell corporation uses a periodic inventory system. the companys ending inventory on december 31 2011 its fiscal-year

Suppose that a is the set of sophomores at your school and : question suppose that a is the set of sophomores at your school and b is the set of students in discrete mathematics at

Pure copper may be produced by the reaction of copperi : pure copper may be produced by the reaction of copperi sulfide with oxygen gas as followscu2s o2g rarr 2cus so2gif

User Account

All Pages