MGT421H5 Lecture Notes - Lecture 7: Online Auction, Financial Statement, Engagement Letter
Document Summary
Group 6 summary of theshoppingmall. com (dc 12-17) Introduction theshoppingmall. com (tsm) is an internet business that provides websites with links, advertising, promotions and coupons to a variety of online shopping sites. Mr. fogg (ceo) plans to issue shares to repay the debt financing and believes that early 20x3 is the right time to issue shares provided the business model has proven itself. Accounting issues: online shopping systems - tsm contracted with three partners for . 5 million to develop all their online shopping systems. In exchange, they sold advertising worth of m to these same retailing websites: coupons and marketing expense - customers who bought pizza from a national pizza chain received a coupon of off their next tsm purchase. Tsm recorded the coupons as marketing expenses as opposed to cost of goods sold .
