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Up till now, CanGo's managers have focused on long-term strategic issues. However, with the IPO looming, they need to pay closer attention to CanGo's short-term financials. After all, investors want see more than estimates of future growth and profits. They want to see solid evidence that a company is financially sound right now. With this in mind, the CanGo team has met to come up with some ideas for improving its current financial picture.

As you watch the meeting, put yourself in the place of a CanGo manager. What do you think of Andrew's magazine subscription idea? What suggestions would you make? See if you can spot several errors the managers make in relation to the application of the revenue recognition and matching principles.

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