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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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How will Samsung’s stock buyback impact its assets, liabilities, and equity?

In late 2014, Samsung Electronics, the smartphone maker, announced that it would be buying back $2 billion of its own shares.  Specifically, it expects to buy back 1.65 million common shares and 250,000 preferred shares. Samsung is also expected to increase its dividend in 2015. Questions What is the impact on Samsung’s balance sheet (assets, […]

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What impact do lower fuel costs and other changes have on an airline’s net income?

American Airlines Group (AAL), the world’s biggest airline, has been reporting record profits in recent quarters.  United Continental Holdings and Southwest Airlines also reported record profits. Part of what has contributed to the record profits has been the decline in the cost of oil. The price of oil has fallen during 2014; we are spending […]

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How will Slappey Communications’ investment in PP&E affect its financial statements?

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 […]

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