Just For Feet Case Study 3j3yn

Just for Feet -

Logo 7, later called logo athletic, sold the logo to Reebok Shine signed audit confirmation indicating he owed 700k to customer

Just for feet: -

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Improperly recognized unearned and fictitious receivables from vendors Failed to properly for excess inventory Improperly recording as income the value of display booths provided by vendors Advertising allowance from vendors – No contract o JFF recorded anticipated allowances as receivables and offset expenses Recorded booth income as JFF’s income JFF had leverage over vendors cause of big orders, only Thomas Shine (Logo) signed it

NextCard -

Credit card company Undercu t average customer acquisition costs Were not profitable, after the dotcom bubble burst, no way to get money from debt and equity markets. Spent lots of money getting bad customers instead of minial amount to get good customers Hid the losses by refusing to provide sufficient allowances each period for expected bad debts Once nextcard was being scrutinized The auditing team manipulated old documents to make it seem like their conclusion was valid