(Answered) 1 evaluate anacomps business new product development

Accounting

1. Evaluate Anacomp's business new product development strategy. What are the risks and benefits of this strategy for Anacomp's shareholders?

2. How is Anacomp's accounting influenced by the way the company organizes and finances its new product development?

Note: At the time of the case, software developments costs were allowed to be capitalized even when a company did not use the R&D partnership mechanism.

4. Compare Anacomp's cash flow performance with its accounting performance. What is your evaluation of the company's financial condition?

5. What is your assessment of Anacomp's future? Justify your answer.

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