Reference no: EM131260260
Outdoors R Us owns several membership-based campground resorts throughout the Southwest. The company sells campground sites to new members, usually during a get-acquainted visit and tour. The campgrounds offer a wider array of on-site facilities than most. New members sign a multi-year contract, pay a down payment, and make monthly installment payments. Because no credit check is made and many memberships originate on a spur-of-the-moment basis, cancellations are not uncommon.
Business has been brisk during its first three years of operations, and since going public in 2000, the market value of its stock has tripled. The first sign of trouble came in 2013 when the new sales dipped sharply.
One afternoon, two weeks before the end of the fiscal year, Diane Rice, CEO, and Gene Sun, controller, were having an active discussion in Sun's office.
Sun: I've thought more about our discussion yesterday. Maybe something can be done about profits.Rice: I hope so. Our bonuses and stock value are riding on this period's performance.Sun: We've been recording unearned revenues when new members sign up. Rather than recording liabilities at the time memberships are sold, I think we can justify reporting sales revenue for all memberships sold.Rice: What will be the effect on profits?Sun: I haven't run the numbers yet, but let's just say very favorable.
Consider these questions:Why do you think liabilities had been recorded previously?
Is the proposal ethical?
Who would be affected if the proposal is implemented?
Do you agree with your classmates' responses?
|
Calculate tax gain realized and recognized on the exchange
: Watson, a calendar year corporation, reported $1,250,000 net income before tax on its financial statements prepared in accordance with GAAP. During the year, Watson exchanged one piece of commercial real estate for another. Calculate Watson's book ga..
|
|
What are minimum features you want to test in your product
: Define a goal for your MVP. What are the minimum features you want to test in your product and service for the first phase? Create a strategy. What steps and tasks do you have to complete to reach the goal set?
|
|
Determine the maximum shear stress in the tube
: A 3-m-long aluminum tube with the cross section shown carries a 200-N m torque.
|
|
What do you do for a living
: The media and Hollywood can have a major impact on how society views nursing as a whole, whether it be negative or positive. I would personally say overall nursing is portrayed negatively through media. Nurses have an obligation to step up and pr..
|
|
Who would be affected if the proposal is implemented
: Outdoors R Us owns several membership-based campground resorts throughout the Southwest. The company sells campground sites to new members, usually during a get-acquainted visit and tour. The campgrounds offer a wider array of on-site facilities than..
|
|
Describe the risk-assessment and risk-management process
: Demonstrate an understanding of the problems associated with the effects of the environment on public health - Identify the importance of occupational safety and industrial hygiene in the workplace.
|
|
How leadership styles and skills of others you would work
: What opportunities and challenges may arise as a result of individuals with differing leadership styles and skills working together? How would you work on a team or in a group with those whose style differs from your own?
|
|
Find the best pairs
: A higher score indicates a higher degree of compatibility in the games of the two individuals concerned. Find the best pairs.
|
|
Determine the smallest safe diameter of the shaft
: Determine the smallest safe diameter of the shaft if the allowable shear stress is 15 ksi.
|