Author Topic: any accountants out there that i can ask a question?  (Read 187440 times)

Offline Menachem613

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Re: any accountants out there that i can ask a question?
« Reply #165 on: April 03, 2014, 08:24:13 AM »

When a store sells a lottery ticket they don't book a $2 sale and $1.xx cost of goods sold, rather they just book the ~6% commission as revenue. The question is when CVS sells VR do they book the $503.95 sale or just the commission they get. Nafka Mina, everyone is assuming that CVS's revenue will fall this quarter and therefore they should short NYSE:CVS, might no be so.

(The reasoning behind lottery accounting is that the $2 isn't their income, it has to be passed on to the state, so the sale is credited to a liability account. Same with VR, the $500 has to be passed on to Incomm).

Your thoughts בבקשה.


I would think that their revenue would improve. They were losing money on VRs.

Offline yitzf

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Re: any accountants out there that i can ask a question?
« Reply #166 on: April 03, 2014, 09:52:10 AM »

I would think that their revenue would improve. They were losing money on VRs.

Revenue or net profit?

Offline Menachem613

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Re: any accountants out there that i can ask a question?
« Reply #167 on: April 03, 2014, 09:54:52 AM »

Revenue or net profit?

The latter.

Offline yitzf

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Re: any accountants out there that i can ask a question?
« Reply #168 on: April 03, 2014, 10:04:13 AM »
The latter.

Even it profit rises somewhat, a fall in year over year revenue can spook investors.

Offline churnbabychurn

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Re: any accountants out there that i can ask a question?
« Reply #169 on: April 03, 2014, 10:57:07 AM »
VR brought a lot of traffic into the stores, inevitably guys purchased other items together with the VR's. Sodas etc.

The net should now plumet. Who needs CVS anyway!  >:(

Offline @Yehuda

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Re: any accountants out there that i can ask a question?
« Reply #170 on: April 03, 2014, 04:45:46 PM »
Q's for the pros - where would I put down cash I received off the books that I would like to report? (Independent Contractor - is that what it's called?)

Additionally, I received a 1099-MISC for a different job I did where I was paid in a cash-equivalent (was given X amount of store merchandise). Where does that get reported? Is that basically the same thing as the first scenario, just the employer gave me a form this time?

Offline george

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Re: any accountants out there that i can ask a question?
« Reply #171 on: April 03, 2014, 05:19:12 PM »

I would think that their revenue would improve. They were losing money on VRs.
Source?

Offline Menachem613

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Re: any accountants out there that i can ask a question?
« Reply #172 on: April 03, 2014, 07:11:00 PM »

Offline george

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Re: any accountants out there that i can ask a question?
« Reply #173 on: April 03, 2014, 07:31:12 PM »
Do the math.
I need numbers to work with before I can do the math. What percent of the  activation fee does CVS keep? How much does it cost them for cc processing? I would assume that they are making a profit. Why else would they have ever allowed payment by cc?

Offline Bostener

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Re: any accountants out there that i can ask a question?
« Reply #174 on: April 03, 2014, 07:39:04 PM »
Q's for the pros - where would I put down cash I received off the books that I would like to report? (Independent Contractor - is that what it's called?)

Additionally, I received a 1099-MISC for a different job I did where I was paid in a cash-equivalent (was given X amount of store merchandise). Where does that get reported? Is that basically the same thing as the first scenario, just the employer gave me a form this time?
I don't know your entire picture but usually I would put it in sch. C and sometimes you could put it on line 21 on the 1040.
Airlines sending me "We're in this together" emails.

Bruh, where were you when my suitcase weighed it 51.50 pounds?

Offline Menachem613

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Re: any accountants out there that i can ask a question?
« Reply #175 on: April 03, 2014, 07:42:07 PM »

I need numbers to work with before I can do the math. What percent of the  activation fee does CVS keep? How much does it cost them for cc processing? I would assume that they are making a profit. Why else would they have ever allowed payment by cc?

Assume amounts most beneficial to CVS. Then apply it to a $500 VR.

Offline @Yehuda

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Re: any accountants out there that i can ask a question?
« Reply #176 on: April 03, 2014, 07:52:47 PM »
I don't know your entire picture but usually I would put it in sch. C and sometimes you could put it on line 21 on the 1040.
Thanks. From reading up online about it, I also found that line 21 makes sense for the cash and sch. C for the 1099-misc.

Offline dudi

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Re: any accountants out there that i can ask a question?
« Reply #177 on: April 03, 2014, 11:41:08 PM »
My wife has been working for the whole 2013 year in the u.s. I got married to her at the end of 2013 and I just received my green card a week ago BH
How does it work with the tax return? 1. Is it true we can wait till I get my SSN# to do if even though its past April 15th? 2. How does it work with the tax return do get a full tax return for 2 ppl even though we just got married?

Offline george

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Re: any accountants out there that i can ask a question?
« Reply #178 on: April 04, 2014, 12:26:53 AM »
Assume amounts most beneficial to CVS. Then apply it to a $500 VR.
I'm not getting your drift. What makes you think they lose money on VR?
My assumption is that CVS takes a share of the $3.95 fee and that amount is greater than what it costs them to process the CC transaction. If this is correct, then they should make money on every VR sale, regardless of the amount loaded.

Offline Saver2000

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Re: any accountants out there that i can ask a question?
« Reply #179 on: April 04, 2014, 12:31:04 AM »
I'm not getting your drift. What makes you think they lose money on VR?
My assumption is that CVS takes a share of the $3.95 fee and that amount is greater than what it costs them to process the CC transaction. If this is correct, then they should make money on every VR sale, regardless of the amount loaded.
Im not following the conversation,  but how can their processing fee possibly be less than $3.95?

That would be less than 1%.