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 dispatch of Wellbutrin XL from Manitoba, Canada to a distributor in North Carolina crashed coterminous 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 third 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 chatter that the loss ($10 - $20 cardinal) was associated with the accident. (Chapman, 2009) victimisation facts from the Harvard Business take aim case study Biovail Corporation : Revenue Recognition and bedevil Sales Accounting and other sources, I lead address the concepts of revenue and expense recognition. I will do this mend answering the following questions: 1) How legion(predicate) truckloads of crossing (Wellbutrin) are real required to carry $10 one thousand billion 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 verbalize revenues under the different FOB contract structures? And, 4) Are you encounter about the companys treatmen t of analysts who cover the rent? 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 randomness 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 take to get a full essay, order it on our website: OrderCustomPaper.com

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