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?
September 30, 2014 
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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 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 […]
Continue readingWhat is the impact of the Candy Crush Saga maker’s IPO on its balance sheet?
April 2, 2014 0 Comments
King Digital Entertainment (NYSE: KING), the maker of the Candy Crush Saga app, had its initial public offering (IPO) the week of March 24th, 2014. King’s stock was priced at $22.50 per share for the IPO; its par value is $0.000197 per share. The IPO raised about $500 million for King. Assume that approximately 2,300,000 […]
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