: Xerox increased sales by recognizing rentals as equipment sales. Why does this increase revenue in the current period?
Equipment Rentals / Sales
Example
Total $600 5 year Rental Contract
.
.
Exposed Receivables
Is?
Account receivables that have become uncollectible
Why Occur?
In case the Rental contract is cancelled before the expected revenue is all collected
2. By recognizing rentals as equipment sales in the current period, does this increase or decrease Xerox’s sales revenue in the future period?
Since such creative accounting is basically moving up future revenue boost current revenue, Xerox’s revenue in future periods is expected to decrease. If dealt properly, Xerox would have recorded revenue by $10 each month However, if Xerox records it
2. By recognizing rentals as equipment sales in the current period, does this increase or decrease Xerox’s sales revenue in the future period?
Since such creative accounting is basically moving up future revenue boost current revenue, Xerox’s revenue in future periods is expected to decrease. If dealt properly, Xerox would have recorded revenue by $10 each month However, if Xerox records it
revenue. Commercialization of the Internet and Web force “traditional” media to face the future and fight for advertisement revenue and consumer attention. (See Figure 1) The next generation of media, which is the DMB(Digital Multimedia Broadcasting), is now threatening the rest of the media.
(Figure 1)
2.What is DMB (Digital Multimedia Broadcasting)?
DMB is a new kind of Convergence
is to position Zappos as the online service leader. If we can get customers to associate the Zappos brand with the absolute best service, then we can expand into other product categories beyond shoes.
- Vision
Whatever you're thinking, think bigger.
Chase the vision, not the money.
Zappos decided to be the very best at delivering customer service.
- Revenue
$ 840 million (2007