Cheers, everyone! Been stuck on this problem for quite sometime. Perhaps I am over-thinking it. Any insights would be greatly appreciated. Thanks.
Im trying to calculate new prepaid subscribers in two periods, 2009 and 2010.
Each new prepaid subscriber gives way to 475 of current portion of deferred revenue and 7600 of non-current portion deferred revenue. When services are performed annually in subsequent periods, 475 is credited to income.
Questions:
1. How many new prepaid subscribers were there in each period?
2. What's the minimum number of new users needed for ending balance of Deferred Revenue to increase in 2010?
3. Should the increase in amount credited to income in 2010 be equal to the number of new subscribers in 2009 * 475 + amount credited to income in 2009? Explain.
2009
Deferred Revenue
Beg Balance: 84,292
Deferred revenue arising from new subscribers: 33,172
Credited to income: (28,287)
Ending balance: 89,177
2010
Deferred Revenue
Beg Balance: 89,177
Deferred revenue arising from new subscribers: 76,042
Credited to income: (48,349)
Ending balance: 116,870
Im trying to calculate new prepaid subscribers in two periods, 2009 and 2010.
Each new prepaid subscriber gives way to 475 of current portion of deferred revenue and 7600 of non-current portion deferred revenue. When services are performed annually in subsequent periods, 475 is credited to income.
Questions:
1. How many new prepaid subscribers were there in each period?
2. What's the minimum number of new users needed for ending balance of Deferred Revenue to increase in 2010?
3. Should the increase in amount credited to income in 2010 be equal to the number of new subscribers in 2009 * 475 + amount credited to income in 2009? Explain.
2009
Deferred Revenue
Beg Balance: 84,292
Deferred revenue arising from new subscribers: 33,172
Credited to income: (28,287)
Ending balance: 89,177
2010
Deferred Revenue
Beg Balance: 89,177
Deferred revenue arising from new subscribers: 76,042
Credited to income: (48,349)
Ending balance: 116,870