Notes to Consolidated Financial Statements
Summary of Significant Accounting Policies
Nature of Operations
Wireless Cookies, Etc is a company that manufactures and distributes various types of baked goods to wholesale retailors and individuals via the internet. The products are available to everyone who has internet connection and is interested in selling our product in their store. The product is available in the USA, several European countries, several Caribbean countries. The cost is negotiated with each vendor who offers the product in a retail store.
The revenue is a computation of revenues, total expenses, and net income. It explains how the profit ...view middle of the document...
Each item is allocated for long term use.
Goodwill and other Intangible Assets
Trademarks and voluntary branding have been acquired and have long term value. All branding is accounted for and the recipes are invaluable. The cost with maintaining the secrecy of these recipes is valued at $50 million.
Maintaining the inventory is handled as first in first out. The same approach is handled with retailors who order the products.
Property, Plant and Equipment
Maintaining the equipment is allocated on a quarterly basis. All equipment is upgraded yearly with new software or maintenance checks. After completion maintenance it is determined if the need for a new equipment is beneficial or continued maintenance is acceptable.
Contingencies and Liabilities
The company offers discounted invoices to its vendors. They have a net term of 10% 30 days or 5% 60 days. Anything over 61 days is demanded paid in full.
Changes in Accounting Principles or Estimates
The company allots for all new accounting changes in principles that are currently implemented over time. This will allow the companies amply time to apply the new changes without any discrepancies in reporting due to the new accounting principles.
Post Balance Sheet Events
The merger of Bagels Etc is pending and the cost to purchase is not reported at this time. The purchase will increase the awareness of the company and once purchased it will increase its product line.