EDGAR, the Electronic Data Gathering, Analysis, and Retrieval system, performs automated collection, validation, indexing, and forwarding of submissions by companies and others who are required by law to file forms with the U.S. Securities and Exchange Commission (SEC). All publicly traded domestic companies use EDGAR to make the majority of their filings. (Some foreign companies file voluntarily.) Form 10-K, which includes the annual report, is required to be filed on EDGAR. The SEC makes this information available on the Internet.

Required:
1. Access EDGAR on the Internet. The web address is www.sec.gov. Search for the most recent 10-K’s of Expedia, Inc., and Booking Holdings Inc. (which includes Priceline). Search or scroll to find the revenue recognition note in the financial statements.

2. For each of the following types of revenue, indicate whether the amount shown in the income statement is “net” or “gross” (the terms used with respect to revenue recognition in the chapter), and briefly explain your answer.

1. Expedia’s “merchant hotel model” revenues

2. Priceline’s “‘Name Your Own Price’ services”

3. Priceline’s “Merchant Retail Services”

3. Consider your responses to 3a through 3c. Does it look like there is the potential for noncomparability when readers consider Expedia and Priceline? Indicate “yes” or “no,” and briefly explain your answer.

In 2015, a jury ruled that Deloitte & Touche LLP wasn’t liable in Florida’s biggest-ever insurance-company collapse. The Florida Department of Financial Services did not prove its claims that Deloitte was negligent in its audits for three insurance companies that collapsed after a string of hurricanes hit the state in 2004 and 2005. The state was seeking up to $850 million in damages. Deloitte had maintained that the insurance companies’ collapses were caused by an unprecedented string of hurricanes, not by an audit failure.

Research this case to learn further details.

How was Deloitte allegedly connected to the damages in this case?

Why did the Florida Department of Financial Services decide to sue Deloitte?

The market for iron is perfectly competitive and all existing producers and potential entrants are identical. Consider the following information about the price of iron.

Between 2000 and 2005, the market price was stable at $2/pound.

In the first three months of 2006, the market price doubled reaching $4/pound, where it stayed for the remainder of 2006.

Throughout 2007 and 2008, the price declined, eventually reaching $2/pound by the end of 2008. Between 2008 and 2012, the price remained stable at $2/pound.

Assume that technology has not changed and that input prices have remained constant over the period. Using ONLY words, explain this pricing pattern over the period.

EXCEL FILE ONLY

Refer to the table below. The table below shows the annual returns (in percentages) for 2 major market indices. For each index, calculate the arithmetic mean return and the geometric mean return of full-year returns from 2005-2015. What is the relationship between the arithmetic and geometric mean returns?

Student is required to produce a financial document comparing two publicly traded corporations. This project is designed to answer the following questions: which company is a better investment?
Student will choose two companies that produce a similar products( i.e. car [ GM &Toyota], retail [Wal-Mart & Target], communications ( T-Mobile & Spring)

source of information: latest annual report published by company 2015 May be available, but if not, use 2014. This report can be found on the company's website.

Elements of paper.
create a side by side income statements comparison for the latest available year for both companies, vertical presentation, with common sized income statements percentage next to each.

A mutual fund advertises that average annual compound rate of
returns for various periods ending end of December 2005 are as
follow :
10 years - 13%
5 years - 17%
2 years - 15%
1 year - 22%
Find the 5-year average annual compound rates of return for the
period January 1, 1996 to December 31, 2000, and nd the annual
rate of return for calender year 2004.

The Capital Asset Pricing Model (CAPM) is a powerful analytical tool use for calculating the price of common stock. After reflecting on theory and application of the CAPM model and reviewing the prior work on the Constant Dividend Growth Model post a response to each of the following questions.

Question 1

What are the primary advantages and disadvantages of the Capital Asset Pricing Model (CAPM) and the Constant Dividend Growth Model for use in pricing common stock?

Question 2

Can either or both of these two models be used to price the stock of Gamma Inc., a non-publicly traded company that does not pay dividends? Explain your answer.

Question 3

Why is it that the financial models for calculating the price of a stock cannot be reliably used to make day to day investment decisions in the stock market?

Company A collected layaway payments from customers and reported revenue as the customers made each payment (as cash was received). Company B recorded no revenue until the full purchase price had been paid and the customer took possession of the merchandise. Assume both companies had $50,000 owed by customers for layaways, which was payable in equal monthly payments over a 8 month period from September of Year 1 through April of Year 2 at a total of $6,250 per month.

Determine the amount that will be reported for each of the financial statement items listed below under the two layaway revenue recognition policies for Year 1 and Year 2:

a) Revenue

b) Cash flow from operations

c) Total liabilities