Accounting Essay

1016 words - 5 pages

Name: Maricela Cobos
Professor: Mauro
Date: 01-27-2012
Project 1
1. What is Netflix’s strategy for success in the marketplace? Does the company rely primarily on a customer intimacy, operational excellence, or product leadership customer value proportion? What evidence supports your conclusion?
Netflix’s strategy for success in the marketplace is that they have great plans of online services to their customers such as subscription plan with no due dates, late fees or shipping charges. It is a convenience Web site where subscribers choose any movie title and then it can be easily returned using Netflix’s prepares mailing. Netflix is the largest online movie rental service with ...view middle of the document...

Unfortunately, stockholders are exposed to lose some of their benefits for being part of this organization and as their expectation to get any reward like dividends. One of Netflix risk is their competitors, which is hard to compete effectively if the other companies offer much better services compare to Netflix. Depending on what the other companies are providing to their customer it becomes an uncontrollable situation. This will affect the company and its stockholders because it will stop the company from increasing or maintaining the market share, revenues and profit margin. Another risk is that if the popularity of DVD decreases due to the technology advance. In the near future all their sales may decline but it can be controllable because by the time go by the company can adapt new strategies to beat this new outcome for not just them but for other business as well. Netflix believe that if they are unable to continue with their current marketing channels they may lose customers because they can promote their services throughout the advertising market. It is a controllable situation because channels are not the only way to reach people. There are other ways like radio, post cards and announcements by having people dressing with the name of the company. Finally, if Netflix is unable to renew or renegotiate their revenue sharing agreements, the gross margin would be affected. Unfortunately, it can be uncontrollable business matter because by the time of renew disadvantageous term may come along of the negotiation. This risk would be uncontrollable because the company cannot tell what is going to happen with their future cost of purchasing titles and its stockholders benefits from being part of this organization. Every time a company gets through a terrible decrease on their products the probability of losing profit; as a result the lost for stockholders’ would be inevitable.

3. Prepare a comparative balance sheet similar to the one shown in Exhibit 15-4 (Use Netflix’s data from 2004 and 2005). For each account shown on Netflix’s balance sheet, calculate the change in the balance and whether the change represents a source or use of cash.


(in thousands, except share and per share data)

| | | | | | | | |
  |    | As of December 31, |   |
  |    | 2004 |   |   | 2005 |   |
Assets |    |   |   |   |   |  CHANGE |   |   |
Current assets: |    |   |   |   |   |   |   |   |
Cash and cash equivalents |    | Outflow | $ 174,461 |   |   | +37,795 | $ 212,256 |   |
Prepaid expenses |    |   Outflow | 2,741 |   |   |  + 5,107 | 7,848 |   |
Prepaid revenue sharing expenses |    |   Outflow | 4,695 |   |   |  + 557 | 5,252...

Other Essays Like Accounting

Accounting Essay

581 words - 3 pages as follows. Section II discusses the background of IFRS adoption in Europe. Section III reviews prior research and provides the basis for interpreting the market reaction to each event. Section IV describes our data and research design. Section V presents our empirical results, and Section VI presents sensitivity analyses. Section VII concludes. Literature review Debates about financial reporting and accounting standards can seem arcane

Accounting Essay

2152 words - 9 pages Introduction During the recent years the use of cloud based accounting information systems (AIS) in business organisations has been growing rapidly. In a survey conducted by Mimecast across the U.S. and Canada on cloud computing adoption by businesses, it has been found that 51 percent of the business ventures have already adopted cloud computing. The survey also indicated that 66 percent of enterprises are considering about the adoption of


1517 words - 7 pages Every entity at the end of the accounting period will make financial record in order to determine the profit or loss during the period. Any income of the entity must be subject to the tax even though they are having profit or suffering loss. The accounting treatment for income taxes is determined by Australian Accounting Standards Board (AASB) 112 which adopts the tax effect method that incorporates both current and future tax consequences of

Accounting - 2404 words

2404 words - 10 pages management. Levitt specifically addresses five of the most popular tricks used by firms to smooth earnings. Secondly, Levitt outlines an eight part action plan to recover the integrity of financial reporting in the U.S. market place. What are the basic objectives of financial reporting? Generally accepted accounting principles provide information that identifies, measures, and communicates financial information about economic entities to reasonably

Accounting - 1018 words

1018 words - 5 pages iPhone at Apple, Inc.: The case provides students with an understanding of the criteria for revenue recognition and the role of accrual accounting in reflecting timing differences between cash receipts and product/service delivery, especially in situations where there are multiple deliverables. The case also enables students to reflect on (a) the use of supplementary non-GAAP disclosures, (b) the impact of accounting on firm value and (c

Accounting - 1993 words

1993 words - 8 pages Maytag they sales became higher for the company than in 2005. Week 4 Read ATC 7-5 in Chapter 7. This situation is very similar to what a company called Enron did several years ago. Use the internet or the university library to research exactly what Enron did in their accounting procedures and what eventually happened to the company. Post your findings and understanding of Enron’s story and respond to two other students’ postings with enhancements

Accounting - 687 words

687 words - 3 pages cost information. For companies using activity-based costing systems, a switch to activity-based budgeting makes sense. An activity-based budget is prepared by focusing on the budgeted costs of activities needed to produce and/or sell products and service instead of using the traditional approach. 7. Describe responsibility centers and responsibility accounting An organizational structure includes lines of responsibility within the

Accounting - 1173 words

1173 words - 5 pages . GAAP. “Generally Accepted Accounting Principles (GAAP) vary from International Financial Reporting Standards in that under GAAP rules, dividends received from a company's investing activities is reported as an "operating activity," not an "investing activity." (Accounting Info) Cash flows from interest and dividends received and paid are disclosed separately. Each is classified in a regular manner from date to date as operating, investing or

Accounting - 2946 words

2946 words - 12 pages Decorus Dea Notes to Consolidated Financial Statements Notes 1 Summary of Significant Accounting Policies Nature of Operations: The Decorus Dea (the “Company,” “we” or “us”) business is focused on providing high end, off the runway clothing and beauty products of superior quality and value. Our stores are located in four different states, Georgia, Florida, California and New York and consist of 56 stores. Our stores are located inside

Accounting - 4330 words

4330 words - 18 pages ACC 312 Fundamentals of Managerial Accounting Midterm Exam 1, Spring 2014 Test Form A SOLUTION Name ______________________________________________________________________ UTEID ____________________________________ Instructor ____________________________________________ Class Days ___________________ Time ______________________ DO NOT OPEN until given instructions to do so. Instructions Pages are numbered sequentially, including

Accounting - 1854 words

1854 words - 8 pages rate of 5.5%. However, because of stable employment experience, the company’s state rate has been reduced to 2%. What is the total amount of federal and state unemployment tax for Williams Co.? a. $35,100 b. $24,600 c. $12,000 d. $8,400 11. In accounting for compensated absences, a company following the guidance in FASB Statement No. 43 would account for the liability using the: Cash

Related Papers

Accounting Essay 566 Words

566 words - 3 pages The Nature of Cost Accounting Cost accounting has been defined by many accounting scholars in various forums. There is no one watertight definition of cost accounting, but the various definitions all point to certain common aspects about the subject. Below are some definitions by certain authorities : “That part of management accounting which establishes budgets and standard costs and actual costs of operations, processes, departments or

Accounting Essay 727 Words

727 words - 3 pages The future of the accounting profession will be a period of increased change and continuous development. The industry will require new levels of business flexibility and competition will intensify because new industry entrants will outsource and automate accounting, audit, and tax professionals, especially for routine and lower-value services. Financial service companies, banks, software and Internet firms will soon offer an increasing amount of

Accounting Essay 1305 Words

1305 words - 6 pages AN OVERVIW OF CREATIVE ACCOUNTING AND WINDOW DRESSING Introduction: Every organization is expected to operate within the confinement of best practices or core competence at least, which has tendency of leading them to distinctive competence or exceptional practice. Since business operations center basically on finance, firms therefore take the accounting records of their organizations very serious as it determines their stay in industry or

Accounting Essay 762 Words

762 words - 4 pages Jack in the Box Unethical Accounting Business The article I have chosen to summarize highlights the accounting practices of a San Diego--based company, Jack in the Box, Inc. (NYSE: JBX). In addition to summarizing the article, I will discuss how the concepts of the article relate to my organization The Platinum Company Inc., including, making recommendations for improvement for my organization based on the article. Lastly, explain the