Biovail Corporation

Biovail Corporation: receipts Timing and Earnings Based on Analysts Stock Ratings and Recommendations Chuck Kenlan Concordia University MBA 502 Case Study Assignment I November 24, 2012 Abstract On October 1, 2003, a transport carrying a committal of Wellbutrin XL from Manitoba, Canada to a distributor in North Carolina crashed honest Chicago, Illinois. The Wellbutrin had been produced by Biovail Corporation, wizard of Canadas largest publically traded pharmaceutical companies. The truck left Biovails manufacturing facility on September 30; a date stamp which coincided with the end of the tertiary quarter. A few days by and by the accident, Biovail released guidance for the 3rd quarter, indicating that revenues and earnings would be below the previously released guidance. The company address that the loss ($10 - $20 cardinal) was associated with the accident. (Chapman, 2009) victimisation facts from the Harvard Business coach case study Biovail Corporation: R evenue Recognition and play a joke on Sales Accounting and other sources, I lead talk about the concepts of revenue and expense recognition. I will do this period answering the following questions: 1) How some(prenominal) truckloads of crossing (Wellbutrin) are in truth required to carry $10 one thousand one thousand jillion of product? (used to validate Biovails claim of value) 2) How should the company do it revenue based upon the two possible FOB promise structures in the case? Why? 3) How does the accident affect the express revenues under the different FOB contract structures? And, 4) Are you meet about the companys treatment of analysts who cover the burst? Would you insufficiency to be an analyst covering this company? How many truckloads of product are required to carry $10 million of product? Analysts from J.P. Morgan Securities covering Biovail give us some information concerning the value of the product, the size of the product and the volume of the truck: (Chapman, 2009) ! * arrangement: $2.83 per tablet which includes 400% mark-up for the distributor and a 35%...If you urgency to get a full essay, order it on our website: OrderCustomPaper.com

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