Question

4. Can you determine from the June 30, 1996 and the June 30, 1995 balance sheets how much money AOL spent on direct-response

America Online, Ine Consolidated Balance Sheets (Amounts in thousands, except share data) June 10, $ Assets Current assets: C

DOLFred SUBSCRIBE aequat TO COBES HOL License rights, net Other assets Deferred income taxes Goodwill, net T 4,947 35,878 135

anything helps, thank you!

i think the direct response advertising is under "Deferred subscriber acquisition costs, net"

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Answer #1

Direct response advertising can be under "Deferred subscriber acquisition costs, net". However since the net figures are present hence the amount received from Subscribers for the same has been netted off against the same.

Plus these are only Deferred Subscriber acquisition costs. There might be some costs which have been actually incurred and taken to the P and L.

Hence we need the following additional information -

a) Detailed Cashflow statement

b) Detailed Profit and Loss Statement

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