Please consider the following questions:

1. What is your assessment of PolyMedica's business model? What are the key drivers of its success?
2. Is the accounting dispute with the SEC significant? How much did PolyMedica spend on direct response advertising in 2003? How much did they expense in 2003?
3. What are the most important arguments in support of PolyMedica's capitalization of direct response advertising expenditures? What are the arguments against the capitalization of these expenses? Which accounting treatment do you think better reflects the economics of PolyMedica's business?
4. What would you do as the CEO of PolyMedica to respond to the SEC?

Please consider the following questions:

1. What is your assessment of PolyMedica's business model? What are the key drivers of its success?
2. Is the accounting dispute with the SEC significant? How much did PolyMedica spend on direct response advertising in 2003? How much did they expense in 2003?
3. What are the most important arguments in support of PolyMedica's capitalization of direct response advertising expenditures? What are the arguments against the capitalization of these expenses? Which accounting treatment do you think better reflects the economics of PolyMedica's business?
4. What would the CEO of PolyMedica to respond to the SEC?