Archive | Ch 02 Transaction analysis RSS feed for this section

How is the balance sheet of Rovio, the maker of Angry Birds, impacted by its Initial Public Offering?

Rovio Entertainment Corporation, the maker of the Angry Birds mobile games, recently made its Initial Public Offering (IPO) on the Helsinki NASDAQ stock exchange. Rovio stock is not available through U.S. stock exchanges. Rovio’s headquarters is in Finland. It also has offices in the United States, Sweden, China, and the United Kingdom. Rovio’s IPO in […]

Continue reading

Given that Toys “R” Us has declared bankruptcy, what are its current, quick, and debt ratios?

Toys “R” Us (see https://www.toysrusinc.com/investors) declared Chapter 11 bankruptcy protection in September 2017, for its US operations. The toy retailer is seeking to restructure or remove some of its debts. Toys “R” Us is also looking to take similar actions for its Canadian operations. Here are the two most recent Toys “R” Us balance sheets. […]

Continue reading

What information can be calculated from McDonald’s 2016 trial balance?

McDonald’s Corporation (NYSE: MCD) is a publicly held corporation and issued its financial statements for 2016 in 2017. To follow is a condensed and adapted trial balance as of December 31, 2016, that was constructed from those financial statements. Please note that the accounts have been adapted and condensed for educational use and should not […]

Continue reading

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 […]

Continue reading

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 […]

Continue reading

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 […]

Continue reading

How will Cedar Point’s assets, liabilities, and equity be impacted by various transactions?

Cedar Point is an amusement park in Sandusky, Ohio, owned by Cedar Fair Entertainment Company.  Over 3.5 million people visit Cedar Point each year between May and October. It covers 364 acres and has more than 150 rides and attractions, including 16 roller coasters. Cedar Point is the second oldest continuously operating amusement park in […]

Continue reading

When LoanMax loans cash to individuals with a 25% monthly interest rate, does it have a receivable or a payable AND is it an ethical practice?

Car title lenders are considered to be predatory lenders, since they charge high rates of interest to those individuals who can least afford it. Various laws in recent years have attempted to curb the high interest rates and these practices. Car title lenders still operate and some would argue that they fill a need in […]

Continue reading

What information can be calculated from Facebook’s trial balance?

Facebook, Inc., is a publicly held corporation and issued its financial statements for 2015 earlier in 2016. To follow is a condensed and adapted trial balance as of December 31, 2015, that was constructed from those financial statements. Please note that the accounts have been adapted and condensed for educational use and should not be […]

Continue reading

What is the impact on Snapchat’s balance sheet from its latest issuance of stock?

Snapchat is one of the fastest growing social media platforms with 16 to 24 year olds. Snapchat is privately-held, which means its stock cannot be purchased on a stock exchange. It may be getting ready for an IPO (initial public offering) sometime later in 2016 or 2017. In the meantime, Snapchat is obtaining funding for operations […]

Continue reading