In September 2013, LinkedIn (LNKD) filed paperwork with the SEC for a $1 billion stock offering of its Class A common stock. LinkedIn reported that it would be using the proceeds from the stock issuance for working capital, expansion of product and sales organizations, and capital expenditures. On August 30, 2013 (a few days before […]
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What are potential cost drivers for an ABC system at Virgin America?
September 20, 2013 
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After several years of losses, Virgin America recently announced that it anticipates a profit for 2013. Although the company is expecting a profit for 2013, it still is not out of the woods. Critics have called for greater cost control at Virgin America. The following table contains selected financial and other data for Virgin America […]
Continue readingWhat does the 2% stock dividend at Arrow Financial Services mean for shareholders?
September 10, 2013 0 Comments
Arrow Financial Corporation (AROW) declared a stock dividend on August 28, 2013. The following news release appeared in PR Newswire: “GLENS FALLS, N.Y., Aug. 28, 2013 /PRNewswire/ — Thomas J. Murphy, President and CEO, announced that a 2% stock dividend was declared on August 28, 2013 and will be distributed on September 27, 2013. Shareholders of record on September 19, 2013, will […]
Continue readingHow does Washington Township analyze its potential equipment purchases?
September 5, 2013 0 Comments
Washington Township in Franklin County, Pennsylvania, operates a Transfer Station and Recycle Center that individuals and businesses can use to recycle a variety of items, including electronics, bottles, and cardboard. At the township’s Transfer Station and Recycle Center, a baler is used to compress and bale certain recyclable items for transport. Typically, balers might produce […]
Continue readingHow many aircraft must be in service to break even at Virgin America?
September 4, 2013 0 Comments
After several years of losses, Virgin America recently announced that it anticipates a profit for 2013. Although the company is expecting a profit for 2013, it still is not out of the woods. Critics have called for greater cost control at Virgin America. The following table contains selected financial and other data for Virgin America […]
Continue readingWhy did Hawaiian Airlines make the decision to offer iPad Minis for in-flight rental?
September 1, 2013 0 Comments
In 2013, Hawaiian Airlines made the decision to add 1,500 iPad Minis to its older Boeing 767 widebody jets to make them available for passengers to rent during flights. Prior to the iPad Minis, these aircraft had dated portable “digEplayers” for its passengers to rent. Presumably, these dated devices have become less attractive to today’s […]
Continue readingWhat types of costs are incurred when manufacturing marshmallow cookies?
August 17, 2013 4 Comments
This posting is about an activity you can use to discuss the various types of manufacturing costs. The cost object is a box of marshmallow cookies. The first step is to show (or ask students to watch) this 4:38 minute “How It’s Made” video about marshmallow cookies. Questions 1) What are the direct materials of the […]
Continue readingWhat were the intangible assets in Yahoo’s purchase of Tumblr?
August 10, 2013 0 Comments
Yahoo purchased Tumblr, a blog-hosting website, in May 2013 for approximately $990.2 million. The fair values of the net tangible assets and identifiable intangible assets acquired from Tumblr were as follows (in millions): Cash $ 16.6 Other tangible assets 74.0 Identifiable intangible assets: Developed technology 23.7 Customer contracts 182.4 […]
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Accounting in the Headlines 