Biovail Corporation: Revenue Recognition and FOB Sales Accounting Case Study, accounting homework help

Question 1: How many truckloads of product are actually required to carry $10 million of product? Show your calculations.

Question 2: How should the company recognize revenue based upon the two possible FOB contract structures mentioned in the case? why?

Question 3: How does the accident affect the stated revenues under the different FOB contract structures? Explain your reasoning.

Question 4: Are you concerned about the company’s treatment of analysts who cover the stock? Would you want to be an analyst covering this company?