What is significant about GAC’s business relationship with its new user?

Read the Graphic Apparel Corporation (GAC) case study from the above article. Then write a five to seven page APA paper analyzing the GAC case study by incorporating the answers to the following questions, in order.
What are the key changes affecting GAC this year?
Who owns GAC?
Who uses GAC’s financial statements?
What is significant about GAC’s business relationship with its new user?
What are the big events to account for in 2014?
How is the custom shirt business working out?
What do we know about GAC’s customer base?
How is the new graphic design working out?
What happened at the warehouse this year?
What is the revenue principle? At what point does GAAP indicate revenue should be recognized?
When does GAC report its revenue from custom orders? Under what circumstances would this be appropriate?
What method of accounting for bad debts does GAC use? When is this method okay?
Has anything changed this year to suggest this approach is no longer acceptable? What do you learn from the number of days to collect receivables in 2014 versus 2013?
What method of accounting for bad debts do you think GAC should use?
How would changing to this alternative method affect GAC’s financial statements? How would changing to this alternative method affect GAC’s current ratio?
Have circumstances surrounding returns changed in 2014? How?
What does GAAP recommend under these new circumstances?
Should GAC consider this alternative? Why? Are sales returns material to the key external user?
Which method of accounting for sales returns do you think is best?
How would changing to this alternative method affect GAC’s financial statements? How would changing to this alternative method affect GAC’s current ratio?
Using what measurement does GAAP require inventory to be reported?
Using what measurement has GAC been reporting its inventory? When is this appropriate?
Has anything changed this year to suggest this approach is no longer acceptable? What do you learn from the number of days to sell inventory in 2014 versus 2013?
What next steps would you recommend for Nicki?

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