Scenario 1 Switch Ltd switched from reporting net revenue to gross revenue. Its gross margin decreased from 100% to 25%. Had it reported using Net Revenue, Revenue would be $30. 2 points 4.1 How much was Revenue inflated (i.e., difference between gross revenue and net revenue) by switching from Net to Gross? Scenario 2 During this year, Deferred Inc. received $10,000 for a revenue arrangement with multiple obligations. 2 points 4.2 The company reported its Days of Deferred Revenue as 35 days. How much revenue (dollar amount) is actually deferred? Scenario 3 3 days before the fiscal year-end, Dubious Inc has an ending AR of $10,000, and their yearly sales is at $120,000. The company does not anticipate any more sales for the remainder of the year. Their credit term is typically 30 days. Though the company has extended the credit term to 45 days to few cu 2 points 4.3 On fiscal year-end, their DSO (Days of Sales Outstanding) is at 60 days. How much sales may be fictitious or due to channel stuffing? Scenario 1 Switch Ltd switched from reporting net revenue to gross revenue. Its gross margin decreased from 100% to 25%. Had it reported using Net Revenue, Revenue would be $30. 2 points 4.1 How much was Revenue inflated (i.e., difference between gross revenue and net revenue) by switching from Net to Gross? Scenario 2 During this year, Deferred Inc. received $10,000 for a revenue arrangement with multiple obligations. 2 points 4.2 The company reported its Days of Deferred Revenue as 35 days. How much revenue (dollar amount) is actually deferred? Scenario 3 3 days before the fiscal year-end, Dubious Inc has an ending AR of $10,000, and their yearly sales is at $120,000. The company does not anticipate any more sales for the remainder of the year. Their credit term is typically 30 days. Though the company has extended the credit term to 45 days to few cu 2 points 4.3 On fiscal year-end, their DSO (Days of Sales Outstanding) is at 60 days. How much sales may be fictitious or due to channel stuffing