Refer to Polaris’ financial statements in Appendix A to answer the following.

1. Identify and write down the revenue recognition principle as explained in the chapter.

2. Review Polaris’ footnotes to discover how it applies the revenue recognition principle and when it recognizes revenue. Report what you discover.

3. What is Polaris’ profit margin for fiscal years ended December 31, 2011 and 2010.

Fast Forward 4. Access Polaris’ annual report (10-K) for fiscal years ending after December 31, 2011, at its Website (Polaris.com) or the SEC’s EDGAR database (www.SEC.gov). Assess and compare the December 31, 2011, fiscal year profit margin to any subsequent year’s profit margin that you compute.