Ujhluh Essay

643 WordsMar 23, 20153 Pages
2nd Memo To: Investors From: Thy Nguyen, Carols England-Mosley, Jesse Ramirez, Kenneth Allen, Wesley Schuller Date: February 9, 2015 Subject: Revenue Recognition for Hewlett - Packard Co. Introduction: The purpose of this memo is about evaluation the revenue recognition methods utilized by Hewlett – Packard Co. (HPQ). This memo is organized into following sections: * Income statement of HPQ * Analysis of revenue recognition Income statement of HPQ: * 12 months ended | Oct 31, 2014 | Oct 31, 2013 | Oct 31, 2012 | Oct 31, 2011 | Oct 31, 2010 | Oct 31, 2009 | Products | 73,726 | 72,398 | 77,887 | 84,757 | 84,799 | 74,051 | Services | 37,327 | 39,453 | 42,008 | 42,039 | 40,816 | 40,124 | Financing income | 401 | 447 | 462 | 449 | 418 | 377 | Net revenue | 111,454 | 112,298 | 120,357 | 127,245 | 126,033 | 114,552 | Cost of products | -56,469 | -55,632 | -59,468 | -65,167 | -65,064 | -56,503 | Cost of services | -28,093 | -30,436 | -32,600 | -32,056 | -30,723 | -30,695 | Financing interest | -277 | -312 | -317 | -306 | -302 | -326 | Cost of sales | -84,839 | -86,380 | -92,385 | -97,529 | -96,089 | -87,524 | Gross profit | 26,615 | 25,918 | 27,972 | 29,716 | 29,944 | 27,028 | Research and development | -3,447 | -3,135 | -3,399 | -3,254 | -2,959 | -2,819 | Selling, general and administrative | -13,353 | -13,267 | -13,500 | -13,466 | -12,585 | -11,613 | Amortization of intangible assets | -1,000 | -1,373 | -1,784 | -1,607 | -1,484 | -1,578 | Impairment of goodwill and intangible assets | – | – | -18,035 | -885 | – | – | Restructuring charges | -1,619 | -990 | -2,266 | -645 | -1,144 | -640 | Acquisition-related charges | -11 | -22 | -45 | -182 | -293 | -242 | Earnings (loss) from operations | 7,185 | 7,131 | -11,057 | 9,677 | 11,479 | 10,136 | Interest expense | -344 | -426 | -548 | -245 | -115 | -271 | Other income

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