Consumers are increasingly distrusting “Big Food,” and Campbell Soup Company (CPB) is working to counter the effects of that trend by offering more healthy or natural alternatives. For example, Campbell’s recently introduced a new line of organic soups, Campbell’s® Organics, and acquired both Bolthouse Farms juices and Plum Organics baby food. In addition to expanding […]
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What does Coca-Cola’s Form 10-k communicate about its accounts receivable?
March 20, 2015 
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The Coca-Cola Company (KO), like other U.S. publicly-held companies, files its financial statements in an annual filing called a Form 10-K with the Securities & Exchange Commission (SEC). Coca-Cola has several assets that are listed on its balance sheet. Let’s look at what is reported on Coca-Cola’s Form 10-K regarding its accounts receivable. See the […]
Continue readingWhen do Keurig and Dr Pepper record a transaction resulting from their exclusive arrangement for Keurig’s upcoming Keurig Cold machine?
March 17, 2015 0 Comments
Keurig Green Mountain, Inc., (GMCR) recently announced that it had signed an exclusive deal with Dr Pepper Snapple Group (DPS) for rights to make pod-versions of Dr Pepper Snapple products in the upcoming Keurig Cold machine (anticipated release date in fall 2015.) Questions On the date of the exclusive contract signing, would Keurig record an […]
Continue readingWhat happens to the breakeven point when Sports Illustrated lays off all six staff photographers and uses freelancers instead?
March 13, 2015 0 Comments
Sports Illustrated announced in late January 2015 that it would be laying off all six of its staff photographers. Instead, it will be using freelance photographers around the world. Sports Illustrated is one of 90 magazines owned by Time Inc. (TIME). Published 56 times a year, Sports Illustrated is read by over 23 million people […]
Continue readingHow does the new equity issued by Sonos, the wireless internet-enabled speaker maker, affect its financial statements?
March 10, 2015 0 Comments
Sonos is a maker of wireless internet-enabled speaker systems. It was founded in California in 2002 and has experienced rapidly growing sales. Its CEO, John MacFarlane, indicated that Sonos would exceed $1 billion in sales in 2014. In December 2014, the privately-held Sonos issued an additional $130 million in new equity. It will be using […]
Continue readingWhat product costs and period costs go into McDonald’s French fries?
March 6, 2015 2 Comments
McDonald’s recently released a video featuring Grant Imahara, a former host from “Mythbusters,” about how its French fries are made. Some people have said that its French fries are mashed-up potatoes (or other ingredients) pressed into French fry shapes. To see how the French fries are actually made, see the video at http://time.com/3675518/how-mcdonalds-makes-french-fries/ (5:06 minutes.) Questions […]
Continue readingWould Hyundai Motor capitalize or expense the major expenditures it plans for 2015?
March 3, 2015 0 Comments
In January 2015, Hyundai Motor Group (KRX), headquartered in Seoul, South Korea, announced plans to spend over $74 billion in the next four years. This spending plan is in response to pressure from the South Korean government to stop hoarding cash and instead use the cash to make investments and to hire more workers. Hyundai […]
Continue readingHow would using drones or bike messengers to deliver products affect Amazon’s cost structure and risk?
February 27, 2015 0 Comments
Amazon is a huge retailer, but it still struggles to compete against bricks-and-mortar stores when customers want the item “right now.” Amazon is currently testing two options to provide one hour deliveries: drones and bike messengers. A drone is an aircraft that flies without a human on board. It may be operated via remote control, […]
Continue readingWhen does SurveyMonkey recognize revenue from its Platinum annual subscription plans?
February 24, 2015 0 Comments
SurveyMonkey is an online survey company that allows its subscribers to customize and administer surveys. It recently made the news for raising another $250 million in equity funding (“SurveyMonkey is worth $2 billion after new $250 million fundraising round, Fortune, December 15, 2014.) (Note: SurveyMonkey is privately held. The founder says the company will not […]
Continue readingWould a Pizza Studio franchisee need to use job-costing or process costing for its made-to-order pizzas?
February 20, 2015 0 Comments
Pizza Studio is a relatively new pizza chain that takes the made-to-order model used by Chipotle and Subway and applies it to pizzas. At a counter, customers order their pizzas with exactly the crust, sauce, cheese, and toppings they want – and then watch as the pizza travels through a conveyor-belt oven, being blasted with […]
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Accounting in the Headlines 