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What is the impact on Netflix’s assets, liabilities, and equity from its new credit line?

In July 2017, Netflix, Inc., (NASDAQ: NFLX) obtained a new credit line for $500 million through five lenders. This credit line means that Netflix will be able to borrow as it needs cash to fund its operations. According to Netflix’s regulatory filing, it plans to use the funds for operations and general corporate needs. The […]

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What information is provided in McDonald’s basic financial statements?

McDonald’s Corporation (NYSE: MCD) is a publicly held corporation with more than $31 billion in assets. It started in 1940 as a BBQ restaurant in San Bernardino, California. In 1948, McDonald’s switched to burgers, shakes, potato chips, and pie. Its Golden Arches are generally believed to be the most recognized symbol in the world. To […]

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NEW! Create Customized Financial Accounting Case Assignments with the Accounting Case Template

The Accounting Case Template (ACT) is a web tool I designed that allows instructors to quickly build an introductory financial accounting case assignment. A variety of options are provided from which the instructor can choose, allowing the instructor to quickly build a case assignment customized for his/her specific course. It takes about two minutes to […]

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What could a Logitech staff accountant have done if he/she knew that the CFO and controller failed to write down the discontinued Revue parts inventory?

In the fourth quarter of 2010, Logitech International released the Revue, a TV set-top box designed to integrate cable/satellite TV with internet content. The Revue Google search bar would be able to find any desired content from any provider and project that content to the TV screen. The Revue was manufactured by contract manufacturers, not […]

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Introductory financial accounting Jeopardy game for end-of-semester review

At the end of the semester, I thought it might be useful to have a review game before the final exam. I have created a Jeopardy-style game that covers basic topics within an introductory financial accounting course. This PowerPoint file contains a Jeopardy-style game suitable for use in an introductory financial accounting class. There are […]

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What does The Cheesecake Factory’s inventory include and where is it located on its financial statements?

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 […]

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What are the fiscal year ends of Amazon, Target, Apple, Walt Disney, and others?

A calendar year runs from January 1 to December 31 each year.  Companies are allowed to select a fiscal year that is different from the calendar year, which means not all companies’ financial statements are as of December 31. Here is a list of a variety of companies and their fiscal years: Amazon.com: Fiscal year […]

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What information is provided in Facebook’s basic financial statements?

Facebook, Inc., is a publicly held corporation and is frequently in the news.  For example, in August 2016, it announced a new feature called “Lifestage,” which is an iOS app that emulates Snapchat and is designed to be used by teens. Also in that same month, Mark Zuckerberg sold $95 million of his Facebook shares. […]

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At Lululemon, how can sales be up while gross margin is down?

Founded in 1988, Lululemon Athletica Inc. (LULU) is an athletic apparel company headquartered in Canada. Lululemon has helped to popularize the ubiquitous yoga pants in the U.S. While it has experienced some sales declines due to a recall of yoga pants in 2013 for being too sheer, Lululemon has revamped its product line to update […]

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What does Walt Disney’s Form 10-K communicate about its unearned revenue and accrued revenue?

Over the past year, The Walt Disney Company (DIS) has made the news because it increased its ticket prices at Walt Disney World in Florida, Disneyland Park in California, and other parks around the world.  Ticket revenue, however, is not its only source of revenue. The following is an excerpt from the Notes to Consolidated […]

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