Discuss when Fitness Health and Racquet Club (FHRC) should recognize revenue from membership fees, c

Discuss when Fitness Health and Racquet Club (FHRC) should recognize revenue from membership fees, court rentals, and coupon book sales. Explain your basis.Discuss how FHRC should account for the revenues on equipment sales considering the down payments and balance due, explaining the point in time this revenue is recognized and why.When should FHRC recognize the 4% estimated cost of the guarantee of the rowing and cross-country machines and how is it classified, as COGS or a charge against sales?How should FHRC account for the internal use of the manufactured equipment inventory? How is this classified and why?Case Studies for ACCT 585 Seminar in Controller$hipContext: Chapter 4 Ratio and Trend Analysis, fromBragg, S. M. (2009). Controllership, the Work of the Managerial Accountant, 8th Ed. Wiley.Case: Hirst & McAnally. (2001). Boston Beer & Lion Brewery: Financial Statement Analysis.Cases in Financial Accounting. NJ: Prentice-Hall.Introduction: The case provides a package of financial information on comparable yet distinctbusinesses sharing a common industry. The statements are almost 20 years old, but thebasics of statement analysis are just as applicable. Granted, you might discoveraccounting practices that differ from those currently applied. (Wow, that’s a greatquestion to ask…what should be done differently?) However, our focus is given thisinformation, what can we learn from and find out about these firms?Case Overview: You are the controller of a manufacturer that wants to expand into a differentbusiness line using both available capital and options for new capital sources. Yourexisting business is food and non-alcoholic drinks, so these firms could leverage existingchannels without cannibalizing, so a good match to grow the company. The brewers donot directly compete with your existing lines for retail facings and customers, and theyshare some regulatory oversight like the FDA (Food and Drug Admin). However, due toTTB (Tax and Trade Bureau) regulations, the distribution channels might remainseparate, so not a comparative for the two assuming you choose a brewer. Yourpreliminary work indicates the benefits of acquiring a microbrewer for financial and nonfinancial benefits, and these two brewers are individually available to buy.Requirements:1. Write an executive brief of 300-400 words, double-spaced, in essay form (item a), addinga schedule for dollars and ratios (b). Submit on Black board Wed. night, 9/9/2015, E.O.B(midnight cutoff). Grades consider content and essay form.a. Compare and discuss the financial results of Boston Brewers Y.O.Y. (1996 vs. 1995),referring appropriates to dollar amounts with insightful ratios, referencing yoursource schedule in the commentary. Discuss and compare the major features of thefinancial position, cash flow and income statement.“Insightful ratios†means you want to analyze and compare relevant financialattributes. Leverage horizontal and vertical ratio analysis to identify similarities anddifferences between the two years.Note: Name the ratios and show the result, but don’t waste time/space defining theratio. Your job is to interpret the combined message of the ratios you prepare andchoose to use. You might calculate more ratios than you use, “phishing†forpossibilities and issues.b. Prepare a schedule (in Excel?) where you compare the SUMMARY financialstatements to support and calculate the ratios for “a†above.2. Prepare for a class discussion on Thursday, 9/10/2015, regarding the benefits anddisadvantages of Boston vs. Lion.Issued by Jef Garner, Accounting Instructor, 9/3/20151Note: Outside sources are often needed but require citation.Issued by Jef Garner, Accounting Instructor, 9/3/20152