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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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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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How do the sale of its Craftsman brand, a loan from a hedge fund, and the sale of real estate impact Sears’ statement of cash flows?

In January 2017, Sears Holding Corporation (NASDAQ: SHLD) sold its Craftsman brand for $900 million to Black & Decker, the manufacturer of power tools and accessories. That same month, a hedge fund affiliated with the CEO of Sears loaned Sears $500 million. Sears also has plans to sell about $1 billion of real estate assets […]

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Which is healthier from a cash flow standpoint, Sears or Wal-Mart?

Sears Holding Corporation (SHLD) announced in April 2016 that it would be closing 68 Kmart and 10 Sears stores during the second half of 2016. The stores it is closing have not been profitable for Sears and it is looking to improve profitability with the closures. Similarly, Wal-Mart Stores, Inc., (WMT) announced in January 2016, […]

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How can a common-size income statement help analysis of Pandora’s results of operations in 2015 compared to 2014?

Pandora Internet Radio by Pandora Media (P) is a streaming music service.  Its free advertising-supported radio service was first launched in 2005.  Pandora users streamed 20.03 billion hours of internet radio during 2014. In December 2014, there were 81.5 million active users of Pandora, making it the largest streaming music service currently. Pandora has a […]

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What does Ford’s 2015 Form 10-K communicate about its cash flows?

Ford Motor Company (F) is an American-based, multinational car and truck manufacturer.  Ford Motor Company was launched in 1903 with $28,000 in cash from twelve investors, including John and Horace Dodge. By 1919, approximately 50% of the cars sold in the United States were made by Ford. In 2014, Ford generated sales of approximately $144 […]

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What contributed to the increase in Caterpillar’s earnings per share in 2014?

Note: This article is a special guest post written by Dr. John Dexter, Jr., CPA, CGMA, Associate Professor, Edinboro University, jdexter@edinboro.edu. Thanks, John, for the contribution! In its Form 10-K for the year ended December 31, 2014, Caterpillar Inc. (CAT) reported diluted earnings per share (EPS) of $5.88, an increase of $0.13 from the prior […]

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How does the new equity issued by Sonos, the wireless internet-enabled speaker maker, affect its financial statements?

Sonos is a maker of wireless internet-enabled speaker systems.  It was founded in California in 2002 and has experienced rapidly growing sales.  Its CEO, John MacFarlane, indicated that Sonos would exceed $1 billion in sales in 2014. In December 2014, the privately-held Sonos issued an additional $130 million in new equity. It will be using […]

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How does cost cutting at Best Buy impact its ROI?

Best Buy is struggling to thrive (and some would say it is even struggling to survive) as it competes with online giant Amazon.com. According to a recent article in Forbes, one way Best Buy is aiming to improve its financial outlook is to cut its cost of goods sold through supply chain efficiency gains. Questions […]

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What is the impact on cash from Sony selling its old Tokyo headquarters?

In March 2014, Sony signed a deal to sell its old Tokyo headquarters and a nearby building for $156 million. This building served as Sony’s headquarters from 1990 to 2007 and is thought of as the birthplace of the company, where Sony founders worked on the Walkman and Trinitron TV. This building sale follows the […]

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