Utz Quality Foods Inc., a snack food company based in Hanover, Pennsylvania, was recently the victim of a $1.4 million fraud scheme. Utz’s former director of purchasing acting together with an Utz vendor allegedly ran a false invoice kickback scheme. During the several years over which the fraud allegedly occurred, Jonathan Haas was the owner […]
Continue reading
Archive | Financial accounting RSS feed for this section
What internal controls might have prevented a Sea World guest relations supervisor from voiding tickets and pocketing more than $116,000?
June 21, 2016 
0 Comments
A guest relations supervisor at SeaWorld’s Aquatica waterpark in Orlando, Lisa Olivardia, would void ticket sales and put the cash in white envelopes that she then put in her pocket. Investigators estimate that she stole between $55,000 and $75,000 each year from 2013 – 2015. Her voided transactions were about triple the rate of her […]
Continue readingWhat is the impact on Snapchat’s balance sheet from its latest issuance of stock?
June 7, 2016 0 Comments
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 readingHow would the Pittsburgh Steelers classify the purchase of robots to use for tackle practice?
June 1, 2016 0 Comments
The Pittsburgh Steelers, a U.S. professional football team based in Pennsylvania, are experimenting with using a robot, called a Mobile Virtual Player (MVP), during practices so that players do not have to tackle each other and risk injury. Instead, the players can tackle the foam-padded robot that mimics the sensation of tackling a person. The MVP […]
Continue readingWhich is healthier from a cash flow standpoint, Sears or Wal-Mart?
April 26, 2016 0 Comments
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, […]
Continue readingHow is 1-800-FLOWERS.COM’s earnings quality from 2013 – 2015?
April 19, 2016 0 Comments
Harry London, a steelworker in Canton, Ohio, started making chocolates for his family and friends around the start of the 20th Century. By 1922, he had enough demand for his fine chocolates that he left his steel-working job and started Harry London Candies. Harry London used the kitchen in his home to create his chocolates […]
Continue readingHow would Square’s IPO impact its balance sheet and income statement?
April 12, 2016 0 Comments
Square, Inc., is an electronics payment company. Its small credit card readers plug into smartphones, making it easy for sellers to accept credit and debit card payments. Jack Dorsey, the founder of Square and Twitter) is said to have been inspired to start Square in 2009 when a friend of his was unable to complete […]
Continue readingHow would an investor account for the receipt of a cash dividend from Microsoft?
April 5, 2016 0 Comments
Microsoft Corp. announced its dividend for the first quarter of 2016 on December 2, 2015. The press announcement on December 2, 2015, read: “Microsoft Corp. on Wednesday announced that its board of directors declared a quarterly dividend of $0.36 per share. The dividend is payable March 10, 2016, to shareholders of record on Feb. 18, […]
Continue readingHow would an investor classify an Anheuser-Busch 5 year, 2.65% bond it intends to hold to maturity?
March 29, 2016 0 Comments
With over 200 beer brands, Anheuser-Busch InBev is the largest beer company in the world (source: Wikipedia.) Its brands include Budweiser, Labatt Blue, Rolling Rock, and Michelob. Anheuser-Busch is in the process of buying SABMiller. Its purchase of SABMiller will add several beer brands to the Anheuser-Busch portfolio, including Coors and Miller. To finance its […]
Continue readingHow will Black Squirrel Rentals use the relative sale value method to allocate the purchase price of a rental property it purchased?
March 22, 2016 0 Comments
Black Squirrel Rentals LLC is a real estate rental company located in Kent, Ohio, specializing in student housing. Black Squirrel Rentals recently purchased a large house at 217 Main Street in Kent for $290,000. Rooms in the house will be rented to students. In addition, there is office space that can be rented out on […]
Continue reading
Accounting in the Headlines 