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Newcomer UsTubeTV (UTV) is a movie and news streaming service. UTV uses a balanced score- card to communicate quarterly financial results to investors. The company obtained the following outcomes in the first and second quarters of this fiscal year: During the quarter Q1 $112,500 Q2 $135,000 93,750 Revenue Cost of goods sold Sales & Marketing Costs General & Admin Exp Total marketing revenue 75,000 63,000 78,750 125,000 137,500 5,000,000 4,500,000

Newcomer UsTubeTV (UTV) is a movie and news streaming service. UTV uses a balanced score- card to communicate quarterly financial results to investors. The company obtained the following outcomes in the first and second quarters of this fiscal year: During the quarter Q1 $112,500 Q2 $135,000 93,750 Revenue Cost of goods sold Sales & Marketing Costs General & Admin Exp Total marketing revenue 75,000 63,000 78,750 125,000 137,500 5,000,000 4,500,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Newcomer UsTubeTV (UTV) is a movie and news streaming service. UTV uses a balanced score- card to communicate quarterly financial results to investors. The company obtained the following outcomes in the first and second quarters of this fiscal year: During the quarter Q1 $112,500 Q2 $135,000 93,750 Revenue 75,000 Cost of goods sold Sales & Marketing Costs General & Admin Exp Total marketing revenue 63,000 78,750 125,000 5,000,000 137,500 4,500,000 At the end of the quarter Q1 $3,437,500 Q2 $3,062,500 5,625 Cash # of revenue-generating customers # of employees 4,500 20 30 The following additional information is available: • All jobs were filled as of the end of each quarter, and during the second quarter of the year, UTV hired seven new employees. • Ten percent of customers from quarter one were lost during the second quarter, however, the company increased sales and marketing expenditures by over 20 percent, resulting in a net gain in customers for the quarter. Required: Compute the following measures that are included in UTV's second-quarter balanced scorecard: 1 Cash burn rate 2 Cash runway 3 Churn rate 4 Market share 5 Customer acquisition cost 6 Employee turnover rate
Transcribed Image Text:Newcomer UsTubeTV (UTV) is a movie and news streaming service. UTV uses a balanced score- card to communicate quarterly financial results to investors. The company obtained the following outcomes in the first and second quarters of this fiscal year: During the quarter Q1 $112,500 Q2 $135,000 93,750 Revenue 75,000 Cost of goods sold Sales & Marketing Costs General & Admin Exp Total marketing revenue 63,000 78,750 125,000 5,000,000 137,500 4,500,000 At the end of the quarter Q1 $3,437,500 Q2 $3,062,500 5,625 Cash # of revenue-generating customers # of employees 4,500 20 30 The following additional information is available: • All jobs were filled as of the end of each quarter, and during the second quarter of the year, UTV hired seven new employees. • Ten percent of customers from quarter one were lost during the second quarter, however, the company increased sales and marketing expenditures by over 20 percent, resulting in a net gain in customers for the quarter. Required: Compute the following measures that are included in UTV's second-quarter balanced scorecard: 1 Cash burn rate 2 Cash runway 3 Churn rate 4 Market share 5 Customer acquisition cost 6 Employee turnover rate
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