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Techmall.Com’s Revenues

In: Business and Management

Submitted By sarveshwaran
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AICPA Case Development Program

Case No. 2001-06: TechMall.com’s Revenues ♦ 1

TechMall.com’s REVENUES
Monte R. Swain, Associate Professor
Brigham Young University, Provo, Utah
Kip R. Krumwiede, Assistant Professor
Brigham Young University, Provo, Utah
Kevin D. Stocks, Professor
Brigham Young University, Provo, Utah
Kyle J. Pexton, Vice-President Finance
Authorize.Net, Inc., Provo, Utah

TechMall.com’s Revenues1
As Sheri walked back to her office from the morning’s meeting, she was painfully aware that the other executives and managers were splitting up into lunch groups and leaving the office, and she was without an invitation.
However, she wasn’t surprised. After the report she had just presented to them, they had a lot to think about. The report was difficult for some to accept. First, the news wasn’t good. Second, she wasn’t able to answer a number of penetrating questions as to the exact reason that revenue was flat this last year for TechMall, nor could Sheri provide a rational plan for what needed to happen this upcoming year to reenergize the revenue line and improve profits.
However, given the fact that her finance team had worked hard just to close the books and get the numbers to Sheri in time for the meeting, there had simply not been time to perform a thorough analysis of the unexpected results. At the end of the meeting, Doug Liddle, the CEO, announced that the group would reconvene in exactly one week to receive from Sheri a more complete analysis and her recommendations. Sheri knew that there would be a lot of tough questions at that next meeting, and the TechMall management certainly had a right to expect that their CFO would return with some good answers. She had a lot of work to do this week. The challenge for Sheri was that this analysis needed to focus on revenues. However, her accounting background, like that of most accounting
professionals,

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