Archive | Ch 10 Stockholders’ equity RSS feed for this section

How does Apple’s issuance of bonds and buyback of its own stock impact its accounting equation?

In May 2017, Apple Inc., filed a prospectus with the SEC, indicating that it would be issuing another $7 billion in bonds during 2017. (Apple issued $10 billion in bonds in February 2017 in the US and $1 billion in Taiwan.) With the bond proceeds, Apple will be buying back its own stock. Apple has […]

Continue reading

How will Brooklinen, the luxury bedsheets startup, account for its $10 million Series A stock issuance?

Vicki and Rich Fulop, a millennial couple from Brooklyn, New York, went on vacation and stayed in a hotel where they fell in love with the bedsheets. When the Fulops made inquiries about how they might purchase the bedsheets, they found out that those sheets were not available for sale by retail customers.  Similar sheets […]

Continue reading

How is Tesla’s balance sheet impacted by its issuance of common stock and convertible five-year notes?

Tesla, Inc. (NASDAQ: TSLA) is ramping up to begin production of the Tesla Model 3. The Model 3 is an all-electric four-door compact luxury sedan that will have a range of at least 215 miles. It will be the most affordable of the Tesla models, starting at $35,000 for the base model. As of mid-March […]

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 Dr Pepper Snapple’s dividend impact its financial statements?

On November 16, 2016, Dr Pepper Snapple Group, Inc. (NYSE: DPS) made the following announcement: “Dr Pepper Snapple Group, Inc. (NYSE: DPS) today announced that its Board of Directors declared a quarterly dividend of $0.53 per share on the company’s common stock.  The dividend is payable in U.S. dollars on January 5, 2017, to shareholders of record on December […]

Continue reading

How will Snapchat’s upcoming IPO impact its assets, liabilities, and equity?

For the past year, there has been speculation that Snap Inc., the parent company of Snapchat, was planning to have an initial public offering (IPO.) Finally, in February 2017, Snap filed the paperwork with the SEC indicating it was going to be issuing stock soon. Snap’s IPO is expected to be the most expensive tech […]

Continue reading

How will The Cheesecake Factory’s dividend announcement and payment impact its balance sheet?

On October 26, 2016, the Board of Directors of The Cheesecake Factory Incorporated (NASDAQ: CAKE) declared …”a quarterly cash dividend of $0.24 per share on the company’s common stock. The dividend is payable on November 22, 2016 to shareholders of record at the close of business on November 9, 2016” (source: News Release, 10/26/2016, “The Cheesecake Factory Reports Results for […]

Continue reading

How would Microsoft’s $40 billion stock buyback and cash dividend impact its balance sheet?

Microsoft Corporation (MSFT) recently announced plans to buy back up to $40 billion of its own stock. In the same announcement on September 20, 2016, Microsoft also stated that it would be increasing the cash dividend by 8% for the dividend to be paid on December 8, 2016, to shareholders of record on November 17, […]

Continue reading

How did a cash dividend impact Lowe’s financial position?

On November 2, 2016, Lowe’s Companies, Inc. (NYSE: LOW) paid a cash dividend of $0.35 per share to shareholders of record as of October 19, 2016.  The Lowe’s Board of Directors declared this dividend on August 19, 2016. As of the end of Lowe’s 2015 year (January 29, 2016), Lowe’s had 910 million shares of […]

Continue reading

How will Toro account for its two-for-one stock split?

The Toro Company (TTC) is a manufacturer of lawn care products such as lawn mowers and irrigation systems. Toro’s brands include Toro, Lawn Genie, and Lawn-Boy.  Toro’s fiscal year end is October 31. As of October 31, 2015, Toro had authorized 175,000,000 shares of common stock. As of this same date, it had 54,650,916 shares […]

Continue reading