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 in the first period at once as sales, it would not have any revenue to record in the later months of the contract because bythat entry, Xerox does not own that equipment any mo
by ROIC. Return on Invested Capital is a key measure of a company’s profitability that focuses on the true operating performance of the company. ROIC can be calculated by multiplying Return on Sales with capital turnover. This formula indicates that firms can increase their profitability through increasing either return on sales or capital turnover. Regarding efforts to increase ROS, it can be
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 in the first period at once as sales, it would not have any revenue to record in the later months of the contract because bythat entry, Xerox does not own that equipment any mo
: 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