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Special Instructions Scope: To enable a rich discussion, the scope of the discussion topic is limited to concepts you have picked up from Lesson 8.
Special Instructions Scope: To enable a rich discussion, the scope of the discussion topic is limited to concepts you have picked up from Lesson 8. Format: Feel free to use bullets/paragraphs/other formatting tools to clearly identify you position. Your discussion point should be at least 300 words (~1/2 page single spaced) but not exceeding 700 words (~1 page single spaced). Please note that your responses will be posted for other students to view. Subject: Rhino Global Technologies makes electronic components, assemblies, and systems for medical, industrial, and defense uses. It is the largest company in its industry. The Securities and Exchange Commission (SEC) alleges Rhino Global Technologies Corp. (Rhino) engaged in improper revenue recognition by shipping products to third-party warehouses and recording sales on products not manufactured. The SEC estimates that Rhino overstated pretax income by at least $3.7 million, or 110%. Rhinos revenue increased 25%. Other non-financial metrics disclosed by Rhino included: 1.A 25% reduction in workforce from 1,000 to 750. 2.% of doctors adopting Rhino Global Technologies stayed flat year-on-year 3.Number of company cars for S&M and executives increased year-over-year 4.Distributors for the industry (of which Rhino is the largest customer) reported lower-than-expected earnings despite rising transportation costs. 5.Staff in R&D increased year-on-year. Problem Which of the metrics above may support the SECs case? Justify your
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