Nutrisystems
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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Recognition of revenue is the cornerstone of any business institution. The accrual accounting alongside matching principle makes it critical for the company to operate efficiently. The two determines the period of accounting which expenses and revenue are recognized. Nutrisystems is a commercial company that deals with weight loss products and services. From the year 1998, the company has made several drastic changes that have seen it fit the current global marketing map through revenue recognition which has allowed it to have a stable operating income. The company has managed to introduce several products and services apart from its primary one which was quality food and nutritionally balance………………..
APA
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