Students are asked to consider several problems in the case. First, pupils are requested to describe how Liberator Medical makes money, to assess its company strategy for achieving this aim, and to evaluate how successful execution of this strategy will probably be observable from the organization’s fiscal performance.
Second, pupils are requested to analyze the company's cash flow scenario, and recent financial performance, including asset management, its profitability, and leverage. Third, pupils are requested to consider the quantitative impact on the financial statements of capitalizing and amortizing direct response marketing outlays of the company's.
Ultimately, pupils are requested to consider in responding to analyzer criticism of its method of accounting for direct response marketing, the disclosure and communication issues the company faced. The case has been used in bank training programs focused on quality and credit evaluation of earnings problems, and in MBA programs to cover corporate financial reporting issues.
PUBLICATION DATE: September 01, 2015 PRODUCT #: TB0399-PDF-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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