A recent Thunderbird MBA grad, Andrew Ferris, joined Diversified Equity Investors LLC as an analyst specializing in information technology, the telecom, and cable/satellite industries. He was requested to supply a financial and accounting evaluation report on Pantera Communications, Inc., a fast growing virtual telecom business. Pantera leased lines from the major long distance operators, and resold long distance services using a network of independent representatives (IRs) who were paid an upfront commission for each new subscriber who signed up for the firm's long distance service.
Pantera Communications, Inc. Case Study Solution
Financial analysts were critical of the company's accounting policy of deferred sales from the start-up package and capitalizing and amortizing the commissions paid to IRs for acquiring new customers.
PUBLICATION DATE: August 03, 2010 PRODUCT #: TB0227-PDF-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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