In December of 2002, the Boston Celtics were purchased by a private investment group Now that the Celtics are owned by a private group, their financial statements are not publicly available However, prior to their going private, their financial statements were publicly available A portion of those ...

1 Deferred Game Revenues results when the Celtics receive cash in advance of a service being provide ...

In December of 2002, the Boston Celtics were purchased by a private investment group. Now that the

Question:

In December of 2002, the Boston Celtics were purchased by a private investment group. Now that the Celtics are owned by a private group, their are not publicly available. However, prior to their going private, their were publicly available. A portion of those (the Liabilities and Equity section of the is shown below. Celtics Basketball Holdings Limited was the name of the entity under which the results of the Boston Celtics were reported prior to their going private.
Review the Liabilities and Equity section of the and answer the following questions.
1. What is Deferred Game Revenues? How would that liability have arisen?
2. What does the account Deferred Compensation represent? Note that this account has both a current and noncurrent portion.
3. As of June 30, 2001, what did the Celtics report as total assets?
4. Consider your answer to part (3) in light of the $50,000,000 amount of outstanding notes payable. If you were a creditor of the Celtics, would you be concerned? How is it possible for the organization to continue to function with such a large partners€™deficit?

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