In October 2014, a former Smucker employee, Mark Kershey, was charged with defrauding the J.M. Smucker Company of more than $4.1 million over a 16 year period. Kershey was the chief airplane mechanic at the company’s hangar at the Akron-Canton Airport in Ohio from 1990 until he was discharged by Smucker in 2013. From 1997 […]
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Should the original cost of the planes for Afghanistan’s air force purchased by the U.S. Air Force influence its decision to scrap those planes?
October 31, 2014 
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The U.S. Air Force recently destroyed 16 transport planes (refurbished G222 planes) that it had purchased for $486 million in 2011. These transport planes were to be used by Afghanistan’s air force but were abandoned due to persistent high maintenance costs. An Afghanistan company paid $0.06 per pound for the scrap, or a total of […]
Continue readingHow does Nike recognize the costs of suing 31 companies over Chuck Taylor trademark infringement?
October 29, 2014 0 Comments
In October 2014, Nike filed suit against 31 companies, claiming these companies have infringed on Nike’s Converse Chuck Taylor All Star sneakers trademark. Chuck Taylor All-Star sneakers have been made since 1917 when Converse first produced them (Nike purchased Converse in 2003). It is an iconic shoe, with black stripes and a rubber toe topper. […]
Continue readingHow should the cost of national advertising by Whole Foods impact the performance report (and segment margin) for each store?
October 24, 2014 0 Comments
Whole Foods Market, Inc., is a supermarket chain based in Austin, Texas, with 381 stores in the US (it also has stores in the UK and Canada.) Whole Foods specializes in natural and organic food and has annual sales of $13 billion. In October 2014, Whole Foods rolled out its first national advertising campaign in […]
Continue readingWhat is the accounting impact of the issuance of Solar Bonds by SolarCity?
October 17, 2014 0 Comments
SolarCity is a U.S. company that designs, finances, and installs solar energy systems. These solar energy systems are installed at businesses, homes, non-profits, and other organizations. On October 15, 2014, SolarCity launched its first public offering of Solar Bonds. This public offering allows individuals to invest in SolarCity by purchasing bonds from SolarCity’s website. There […]
Continue readingHow will Slappey Communications’ investment in PP&E affect its financial statements?
September 30, 2014 0 Comments
Slappey Communications is a technology firm in Birmingham, Alabama, specializing in telecommunications, computer, and network security. Its owner, Bill Slappey, invested nearly $770,000 in property, plant, and equipment for the business in 2014 (See “Small Firms Poised to Spend More on Plants, Equipment,” A. Loten and V. Monga, Wall Street Journal, September 3, 2014.) Slappey […]
Continue readingHow will a $37 million expansion to retool an assembly plan impact GM’s financial statements?
July 29, 2014 0 Comments
General Motors (GM) is considering a $37-million expansion to one of its Michigan assembly plants. The Buick Enclave, Chevrolet Traverse, and GMC Acadia crossovers are built at the Lansing Delta Township plant. GM officials have not announced what the $37-million expansion will include but they have applied for tax incentives from the City of Lansing […]
Continue readingHow does outfitting AMC movie theaters with recliners affect the company’s break even point and operating leverage?
July 18, 2014 0 Comments
AMC Entertainment Holdings Inc. is spending millions of dollars to install recliner-seating in its theaters. AMC Entertainment Holdings Inc. is outfitting about 1,800 of its nearly 3,000 auditoriums with recliners for a total cost of about $600 million. The recliners will remove up to two-thirds of the seating capacity in each theater, due to […]
Continue readingWhat is the impact on American Apparel’s current ratio of the loan it received from Standard General?
July 10, 2014 0 Comments
American Apparel has been in the news in recent weeks. Its board fired CEO Dov Charney amid several reports of his misdeeds. The company has also lost $270 million over the past three years. Last week, one of American Apparel’s creditors, Lion Capital, called a $10 million loan it had made to American Apparel. (“Calling” […]
Continue readingWhat are implications of Casella Waste Systems changing its year end from April 30 to December 31?
July 2, 2014 0 Comments
Casella Waste Systems, Inc., is a solid waste services company operating primarily in the eastern United States. Its fiscal year end has historically been April 30. In recent years, the region has experienced severe weather in the spring. The severe weather would drive down earnings for Casella in the last few months of its fiscal […]
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Accounting in the Headlines 