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Revenue Recognition and Operating Income
–
How does each firm recognize revenue and how does its
revenue recognition policies compare to its competitors? Is
there evidence of aggressive revenue recognition? Consider the
firm’s operating income and how it has been affected by “above
the line” items including research and development expenses,
restructuring costs, income taxes and foreign currency
translation. Consider “below the line” components to income
including discontinued operations and extraordinary items.
Examine earnings per share and the impact of dilution from new
shares (and potential new shares) and the anti-dilution effects of
share buy-backs. Finally, consider the “quality of earnings” of
your firms.
I need the question above answered for Nutrisystems

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Revenue Recognition and Operating Income – How does each firm re.docx

  • 1. Revenue Recognition and Operating Income – How does each firm recognize revenue and how does its revenue recognition policies compare to its competitors? Is there evidence of aggressive revenue recognition? Consider the firm’s operating income and how it has been affected by “above the line” items including research and development expenses, restructuring costs, income taxes and foreign currency translation. Consider “below the line” components to income including discontinued operations and extraordinary items. Examine earnings per share and the impact of dilution from new shares (and potential new shares) and the anti-dilution effects of share buy-backs. Finally, consider the “quality of earnings” of your firms. I need the question above answered for Nutrisystems