In a recent visit in early February to a Target (NYSE: TGT) store in northeast Ohio, snow shovels were on display next to swimming suits, offering an interesting juxtaposition. [The average temperature in northeast Ohio in February is about 31° Fahrenheit, accompanied by an average monthly snowfall of about 15.”] An article in the Wall […]
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How will Snapchat’s upcoming IPO impact its assets, liabilities, and equity?
February 21, 2017 
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For the past year, there has been speculation that Snap Inc., the parent company of Snapchat, was planning to have an initial public offering (IPO.) Finally, in February 2017, Snap filed the paperwork with the SEC indicating it was going to be issuing stock soon. Snap’s IPO is expected to be the most expensive tech […]
Continue readingHow do the sale of its Craftsman brand, a loan from a hedge fund, and the sale of real estate impact Sears’ statement of cash flows?
February 16, 2017 2 Comments
In January 2017, Sears Holding Corporation (NASDAQ: SHLD) sold its Craftsman brand for $900 million to Black & Decker, the manufacturer of power tools and accessories. That same month, a hedge fund affiliated with the CEO of Sears loaned Sears $500 million. Sears also has plans to sell about $1 billion of real estate assets […]
Continue readingWhat information is relevant when deciding whether to laser tattoo fruits and vegetables instead of using paper or plastic stickers?
February 14, 2017 0 Comments
Every piece of fruit and vegetables sold in U.S. grocery stores has a small sticker on it. These stickers include food type, origin, and whether it was grown organically. Laser Food is a company based in Spain that makes laser marking machines. These Laser Mark machines tattoo every piece of fruit and vegetable with identifying […]
Continue readingHow would Apple’s financial statements be impacted by its iPhone one-year warranty and related iPhone 6s battery replacement program?
February 9, 2017 0 Comments
Every new iPhone comes with a basic one-year warranty. If defects in materials or workmanship are discovered in one year from the date of retail purchase, Apple will repair or replace the iPhone at no cost to the customer. Recently, a batch of iPhone 6s devices was discovered to have a defect that causes them […]
Continue readingWould Wilson Sporting Goods use job costing or process costing for its footballs?
February 7, 2017 2 Comments
Footballs for the National Football League (NFL) are made by the Wilson Sporting Goods Company. Wilson makes about 700,000 footballs for NFL games each year, including the Super Bowl. The footballs are made at a Wilson factory in Ada, Ohio. Every Super Bowl football has been made at this small factory. The equipment used to […]
Continue readingWhat does The Cheesecake Factory’s inventory include and where is it located on its financial statements?
January 17, 2017 0 Comments
The Cheesecake Factory Incorporated (NASDAQ: CAKE) operates over 200 restaurants and two bakeries in the United States. In its two bakeries, it bakes and prepares more than 70 desserts, both for its own use in its restaurants and for sale to a wide variety of wholesalers and retailers. The Cheesecake Factory’s inventories consist of restaurant […]
Continue readingHow will Cedar Point’s assets, liabilities, and equity be impacted by various transactions?
December 29, 2016 0 Comments
Cedar Point is an amusement park in Sandusky, Ohio, owned by Cedar Fair Entertainment Company. Over 3.5 million people visit Cedar Point each year between May and October. It covers 364 acres and has more than 150 rides and attractions, including 16 roller coasters. Cedar Point is the second oldest continuously operating amusement park in […]
Continue readingWhat costs at Uber’s Manhattan office would be direct versus indirect for various cost objects?
December 8, 2016 0 Comments
Uber Technologies, Inc. (Uber) is a privately-held $66 billion ride-sharing company that has offices all over the world. Uber has over 8,000 employees, not counting the drivers who are categorized as independent contractors. One of Uber’s offices is in Manhattan in New York City. The office is in an old freight warehouse and former nightclub, […]
Continue readingHow many Classic Moana™ dolls must Disney sell to cover its costs of developing the sustainable packaging for the doll?
December 1, 2016 2 Comments
Walt Disney’s new movie, Moana™, opened in theaters across the United States in late November 2016. The movie is about an island teenager, Moana™, who sets out on an action-packed voyage to save her people. Disney has released a doll modeled after the heroine of the movie, its Classic Moana™ doll. The doll is 11” […]
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Accounting in the Headlines 