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 motortruck carrying a warhead of Wellbutrin XL from Manitoba, Canada to a distributor in North Carolina crashed boney 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 tell that the loss ($10 - $20 cardinal) was associated with the accident. (Chapman, 2009) victimisation facts from the Harvard Business naturalise case study Biovail Corporation: Reven ue Recognition and confound Sales Accounting and other sources, I lead demonstrate the concepts of revenue and expense recognition. I will do this time answering the following questions: 1) How some truckloads of crossing (Wellbutrin) are in truth required to carry $10 one thousand trillion of product?

(used to validate Biovails claim of value) 2) How should the company do it revenue based upon the two possible FOB arrangement structures in the case? Why? 3) How does the accident affect the verbalize revenues under the different FOB contract structures? And, 4) Are you name about the companys treatment of analysts who cover the sever? Would you! insufficiency to be an analyst covering this company? How many truckloads of product are required to carry $10 one thousand million of product? Analysts from J.P. Morgan Securities covering Biovail give us some due south concerning the value of the product, the size of the product and the volume of the truck: (Chapman, 2009) * swan: $2.83 per tablet which includes 400% mark-up for the distributor and a 35%...If you indigence to get a full essay, order it on our website: OrderCustomPaper.com

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