If all the Capitalized subscriber aquisition costs which had been incurred during the year 1995 had been expensed instead, illustrate how the 1995 income statement would have been affected (using after-tax dollar amounts)
June 30, 1995 1994 Assets Current assets: Cash and cash equivalents Short-term investments Trade accounts receivable Other receivables Prepaid expenses and other current assets Total current assets Property and equipment at cost, net Other assets: Product development costs, net Deferred subscriber acquisition costs, net License rights, net Other assets Deferred income taxes Goodwill, nec $45,378 18,672 32,176 11,103 25,527 132,856 70,466 $43,891 24,052 8,547 2,036 5,753 84,279 20,306 18,914 77,229 5,537 11,479 35,627 54,356 $406,464 7,912 26,392 53 2,800 12,842 $154,584 $84,639 2,829 23,509 20,021 484 $15,642 896 - 13,076 4,488 1,690 1,830 133,312 597 36,389 Liabilities and Stockholders' Equity Current liabilities: Trade accounts payable Accrued personnel costs Other accrued expenses and liabilities Deferred revenue Line of credit Current portion of long-term debt and capital lease obligations Total current liabilities Long-term liabilities: Notes payable Capital lease obligations Deferred income taxes Deferred rent Total liabilities Stockholders' equity: Preferred stock, $.01 par value; 5,000,000 shares authorized, none issued Common stock, $.01 par value; 100,000,000 shares authorized, 37,554,849 and 30,771,212 shares issued and outstanding at June 30, 1995 and 1994, respectively Additional paid-in capital Accumulated deficit Total stockholders' equity 17,369 2,127 35,627 85 188,520 5,836 1,179 12,842 41 56,287 375 251,539 (33,970) 217,944 $406,464 308 98,836 (847) 98,297 $154,584 June 30, 1995 1994 Assets Current assets: Cash and cash equivalents Short-term investments Trade accounts receivable Other receivables Prepaid expenses and other current assets Total current assets Property and equipment at cost, net Other assets: Product development costs, net Deferred subscriber acquisition costs, net License rights, net Other assets Deferred income taxes Goodwill, nec $45,378 18,672 32,176 11,103 25,527 132,856 70,466 $43,891 24,052 8,547 2,036 5,753 84,279 20,306 18,914 77,229 5,537 11,479 35,627 54,356 $406,464 7,912 26,392 53 2,800 12,842 $154,584 $84,639 2,829 23,509 20,021 484 $15,642 896 - 13,076 4,488 1,690 1,830 133,312 597 36,389 Liabilities and Stockholders' Equity Current liabilities: Trade accounts payable Accrued personnel costs Other accrued expenses and liabilities Deferred revenue Line of credit Current portion of long-term debt and capital lease obligations Total current liabilities Long-term liabilities: Notes payable Capital lease obligations Deferred income taxes Deferred rent Total liabilities Stockholders' equity: Preferred stock, $.01 par value; 5,000,000 shares authorized, none issued Common stock, $.01 par value; 100,000,000 shares authorized, 37,554,849 and 30,771,212 shares issued and outstanding at June 30, 1995 and 1994, respectively Additional paid-in capital Accumulated deficit Total stockholders' equity 17,369 2,127 35,627 85 188,520 5,836 1,179 12,842 41 56,287 375 251,539 (33,970) 217,944 $406,464 308 98,836 (847) 98,297 $154,584
