For years, the City of Allentown, PA, has had its payroll clerk write the pension checks to its retirees every two weeks. The pension check-writing system is based in an older accounting system that was installed in 1983. The only person who has been trained to use the older accounting system to write the pension […]
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How does Starbucks account for gift card sales?
December 23, 2013 
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In December 2013, Starbucks was predicting it would have record gift card sales for the year. Last year (2012), Starbucks sold more than 2 million gift cards on the Thursday before Christmas, which was a rate of more than 1,500 gift cards per minute. In 2013, Starbucks expects to top that figure. For the entire […]
Continue readingHow should Amazon Web Services price its services to Zappos?
December 19, 2013 1 Comment
Amazon.com has some of the biggest data centers in the world, where it runs cloud-based hosting services. Amazon Web Services, Inc. (AWS), is the division of Amazon.com that provides compute, storage, and database services to a wide variety of companies, including GE, Netflix, Pfizer, Pinterest, and others. Amazon’s divisions also use its cloud-based hosting services. […]
Continue readingWhen does Ford Credit recognize bad debt expense associated with a new car loan?
December 17, 2013 0 Comments
Every individual has a credit score, which is an approximate measure of the risk of loan default to potential lenders. Credit scores range from about 300 – 850, with 850 being the best credit score possible. This credit score is a combination of several categories of history about the individual, including length of credit history, […]
Continue readingShould you rent a cable modem from Time Warner Cable or buy one?
December 11, 2013 0 Comments
When you have internet service from Time Warner Cable, you will need a cable modem. Time Warner will rent you a modem for $5.99 per month. Alternatively, you could purchase your own cable modem. For example, you could purchase the Motorola Surfboard SB6121 cable modem from Amazon for $79.99. Questions What is the payback period […]
Continue readingHow is the redemption of preferred stock reported on the statement of cash flows for Seacoast Banking Corporation of Florida?
December 6, 2013 0 Comments
The following is from a press release from Seacoast Banking Corporation of Florida, the holding company for Seacoast National Bank, dated November 29, 2013: “…Seacoast National Bank…announced it has issued a notice to redeem, subject to regulatory approval, all of its 2,000 shares of Fixed Rate Cumulative Perpetual Preferred Stock, Series A… for an aggregate […]
Continue readingShould Apple Country Orchards sell Granny Smith apples or make cider from those apples?
December 3, 2013 0 Comments
Apple Country Orchards in Idalou, Texas, has 6,000 apple trees and offers 30 varieties of apples. The orchard is 29 years old and allows customers to pick their own apples or to purchase pre-picked apples. In addition to apples and apple picking, the orchard offers hayrides, lunch, pumpkins, and a variety of other items. Apple […]
Continue readingWhat is in Urban Outfitters’ auditor’s report?
November 29, 2013 0 Comments
Urban Outfitters, Inc., is a specialty retailer, offering a wide selection of clothing, accessories, and other items. The Fiscal Year 2013 Annual Report for Urban Outfitters, Inc., can be found here. Page F-2 (page 54 in the pdf document) of that annual report contains the “Report of Independent Registered Public Accounting Firm,” or the auditor’s […]
Continue readingWhat are “loan reserves” at Bank of America?
November 21, 2013 0 Comments
According to a recent Wall Street Journal article (“Big Banks Are Adding Profits With ‘Reserve’ Cash, October 25, 2013” , Bank of America has indicated that its credit quality has increased since the financial crisis of 2008, due both to increased loan standards and rising house prices. Bank of America released $1.4 billion of loan reserves […]
Continue readingWhat is break even for a food vendor at The Ohio State Fair?
November 19, 2013 0 Comments
The 160th Ohio State Fair in 2013 had an estimated 903,824 visitors during the twelve days of the fair, which was record-breaking attendance. The high attendance led to a record-breaking profit of about $400,000 for the fair. Among the sources of revenue for The Ohio State Fair are the revenues generated from the food vendors. […]
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