identify all the economic entities involved in the development of anacomp s 263933

Week 2: “Anacomp Inc.” [on Blackboard] 1. Identify all the economic entities involved in the development of Anacomp’s CIS software system. 2. Describe the contractual arrangements between the economic entities involved in the CIS development. Who bears the majority of the risk of failure of the development effort? Who stands to gain most if the development effort succeeds? Are Anacomp’s shareholders better off or worse off with this arrangement, relative to in-house development of the system? 3. What criteria will Anacomp’s management use in deciding on whether or not to buy back the CIS system from RTS Associates? Is Anacomp’s management likely to be unbiased in deciding on the timing and the price of the purchase? If not, what will be the direction of the bias? 4. Describe how Anacomp accounts for the CIS development effort. How does this type of accounting compare with the accounting for in-house software development? What particular accounts will be affected differentially by the two development arrangements? 5. In general, do you think Anacomp’s use of R&D partnerships is a sensible approach to new product development? What are the overall costs and benefits of this approach? 6. Anacomp’s earnings dropped from $0.87 per share in 1981 to $0.50 per share in 1982. What are the reasons for this earnings decline? Are there any unusual and one-time items that influenced Anacomp’s 1982 performance? 7. What is the total amount of debt that Anacomp has on its books? Does the company have any off-balance-sheet liabilities? 8. What is your assessment of Anacomp’s financial flexibility at the end of 1982? Can the company withstand any potential difficulties which could arise with the completion of the CIS system? 9. What is your overall assessment of Anacomp’s future? Do you think Anacomp’s investors should be worried about the company’s viability???????????????????????????????????????????????????????????????????????????