What managerial accounting tools could be used to determine whether it would be profitable to redevelop Grossinger’s Catskill Resort Hotel, the inspiration for the movie “Dirty Dancing”?

The Grossinger’s Catskill Resort Hotel in the Catskill Mountains in Liberty, New York, was the inspiration for screenwriter Eleanor Bergstein when writing the “Dirty Dancing” movie screenplay. Her fictional Kellerman’s was a family resort, full of activities such as swimming, tennis, and dancing. Opened in 1919, Grossinger’s contained 35 buildings and attracted up to 150,000 […]

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How are Roku’s financial statements impacted by its initial public offering (IPO)?

On September 28, 2017, Roku Inc. (NASDAQ: ROKU) concluded its initial public offering (IPO) of 15,900,000 shares of its Class A common stock and realized net proceeds of approximately $219,420,000. The par value per Class A common stock share is $0.0001.  Assume that the market price on the issue date was $13.80 per share. Ignore […]

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When comparing 2017 to 2008, how can Target Corporation’s EPS rise, yet its net earnings decrease?

Target Corporation (NYSE: TGT) has been repurchasing its common stock over the past several years. Target’s fiscal year ends on the Saturday nearest to January 31. Use the information from Target’s 2017 and 2008 fiscal years (a ten-year gap) in this table to answer the questions that follow. Target Corporation Comparing 2017 EPS to 2008 […]

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Which iPhone model is the most profitable for Apple?

In late September 2017, Apple Inc. (NYSE: AAPL) announced that it would be releasing three new models of its iPhone in the fourth quarter of 2017: the iPhone X, the iPhone 8 Plus, and the iPhone 8. In addition, it would continue to sell some of the older models. To follow is a table containing […]

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When will Maroon 5 recognize revenue from its 2018 concerts at Madison Square Garden in New York City?

During 2018, the band Maroon 5 is touring across the U.S. on its “Red Pill Blues Tour 2018.” Two of those concerts, on October 14 and 15, will be held at Madison Square Garden in New York City. Madison Square Garden has a seating capacity for concerts of approximately 19,000. According to a Business Insider […]

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How is the balance sheet of Rovio, the maker of Angry Birds, impacted by its Initial Public Offering?

Rovio Entertainment Corporation, the maker of the Angry Birds mobile games, recently made its Initial Public Offering (IPO) on the Helsinki NASDAQ stock exchange. Rovio stock is not available through U.S. stock exchanges. Rovio’s headquarters is in Finland. It also has offices in the United States, Sweden, China, and the United Kingdom. Rovio’s IPO in […]

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How does the drop in the price of eggs impact Kellogg’s® variances for its Eggo® Homestyle waffles?

In 2015, when the avian flu hit egg producers hard, there was a shortage of eggs. Egg prices increased dramatically. Over the years since 2015 however, egg production has ramped back up as egg producers have restocked their flocks of egg-laying chickens.  There is now a glut of eggs, putting causing the price of eggs […]

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Does Tesla sell its cars FOB destination or FOB shipping point?

The following quote is from a recent Tesla news release (“Tesla Q3 2017 Vehicle Deliveries and Production,” October 2, 2017): “In addition to Q3 deliveries, about 4,820 Model S and X vehicles were in transit to customers at the end of the quarter. These will be counted as deliveries in Q4 2017.” (Note: “Q3” refers […]

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Given that Toys “R” Us has declared bankruptcy, what are its current, quick, and debt ratios?

Toys “R” Us (see https://www.toysrusinc.com/investors) declared Chapter 11 bankruptcy protection in September 2017, for its US operations. The toy retailer is seeking to restructure or remove some of its debts. Toys “R” Us is also looking to take similar actions for its Canadian operations. Here are the two most recent Toys “R” Us balance sheets. […]

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How does John Deere account for the loans it makes to farmers for the purchase of tractors and crop supplies?

Deere & Company (NYSE: DE), otherwise known as John Deere, builds tractors and other farm equipment. For the past several years, it has been difficult for farmers to get bank loans for planting crops and for purchasing large, expensive farm equipment. Deere has stepped in to fill the gap in agricultural financing – Deere makes […]

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