skaramjeet12

skaramjeet12

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Karamjeet SinghDr. A.P.J. Abdul Kalam Technical University

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I'm a Master's in Computer Application with 10 years of experience in the IT industry and strong knowledge and expertise in multiple subjects. I can provide detailed solutions ...

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Reading and Interpreting Nordstrom's Notes-RevenueRecognition

The following excerpt is taken from Note 1 on page 42 ofNordstrom’s Form 10-K for the fiscal year ended January 28,2012:

Net Sales
We recognize revenue from sales at our retail stores at the pointof sale, net of estimated returns and excluding sales taxes.Revenue from our sales to customers shipped directly from ourstores and our online and catalog sales includes shipping revenue,when applicable, and is recognized upon estimated receipt by thecustomer. We estimate customer merchandise returns based onhistorical return patterns and reduce sales and cost of salesaccordingly.

The following excerpt on page 44 is from the same note:

Gift Cards
We recognize revenue from the sale of gift cards when the gift cardis redeemed by the customer, or we recognize breakage income whenthe likelihood of redemption, based on historical experience, isdeemed to be remote.

Required:

Assume that you buy agift card for a friend. Identify and analyze the transactionNordstrom records at the time you buy the card.

Activity

- Select your answer - Operating

Investing

Financing

Accounts

- Select your answer - Cash Increase, Gift Card LiabilityIncrease

Cash Increase, Gift Card Liability Decrease

Cash Decrease, Gift Card Liability Increase

Cash Decrease, Gift Card Liability Decrease

Statement(s)

- Select your answer - Balance Sheet only

Income Statement only

Balance Sheet and Income Statement

Identify and analyze the adjustment Nordstrom recordswhen your friend redeems the card.

Activity

- Select your answer - Operating

Investing

Financing

Accounts

- Select your answer - Gift Card Liability Increase, SalesRevenue Increase

Gift Card Liability Increase, Sales Revenue Decrease

Gift Card Liability Decrease, Sales Revenue Increase

Gift Card Liability Decrease, Sales Revenue Decrease

Statement(s)

-Select your answer - Balance Sheet only

Income Statement only

Balance Sheet and Income Statement

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A multiple-effect evaporator is an apparatus for efficiently by means of the heat from steam to evaporate water. Water is boiled in a sequence of vessels, each held at a lower pressure than the last. Because the boiling temperature of water decreases as pressure decreases, the vapour boiled off in one vessel can be used to heat the next. and only the first vessel requires an external source of heat. While in theory. evaporators may be built with an arbitrarily large number of stages, evaporators with more than four stages are rarely practical except in systems where the liquor is the desired product such as in chemical recovery systems where up to seven effects are used. Multiple effect evaporation commonly uses sensible heat in the condensate to preheat liquor to be flashed. In practice the design liguid flow paths can be somewhat complicated in order to extract the most recoverable heat and to obtain the highest evaporation rates from the equipment. The evaporator is used to remove the solvent from the solution. In the four stage evaporation system used in sugar cane industries, a 50% by mass sugar solution is concentrated to by 65% by evaporating an equal amount of water in each of four stages. With total input of 50,0XX lb/h, a product stream of 35,0XX lb/h is produced.

 

 Draw the block flow diagram?

 

 Write the general material balance for the system?

 

 Determine the compositions of intermediate stream?

 

 Whether the mass flow rate of each stream can be calculated? If yes or no, justify your answer.

 

 Perform the Degree freedom of analysis of overall system and individual units?

 

 Write the strategy to solve the problem.

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