SurveyMonkey is an online survey company that allows its subscribers to customize and administer surveys. It recently made the news for raising another $250 million in equity funding (“SurveyMonkey is worth $2 billion after new $250 million fundraising round, Fortune, December 15, 2014.) (Note: SurveyMonkey is privately held. The founder says the company will not […]
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What internal control weakness at Netflix allowed its former VP of IT operations to allegedly receive kickbacks from technology firms?
February 17, 2015 
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In November 24, 2014, Netflix filed a lawsuit against its former vice president of IT operations, Mike Kail, alleging fraud, breach of fiduciary duties, and other charges. Here is an excerpt from the lawsuit filing in Superior Court of the State of California, Santa Clara County:. “…During his tenure at Netflix, including as Netflix’s Vice […]
Continue readingWhat does Coca-Cola’s Form 10-K communicate about its short-term investments?
February 16, 2015 0 Comments
Coca-Cola is firmly entrenched in our history and culture. On February 28, 2015, a Coca-Cola exhibition will open at the High Museum of Art in Atlanta. The exhibition will feature paintings, photographs, and other items related to Coke’s iconic curved bottle. The exhibition will run through October 4, 2015. (Fun fact: Coca-Cola is sold in […]
Continue readingWhat does Walt Disney’s Form 10-K communicate about its PP&E?
February 12, 2015 0 Comments
In February 2015, The Walt Disney Company (DIS) unveiled its new interactive queue for one of its oldest attractions at its Magic Kingdom Park (Walt Disney World) in Orlando, Peter Pan’s Flight (see video here.) As guests wait in line, they enter into the Darling’s foyer. From the foyer, guests head into the children’s nursery. […]
Continue readingHow are General Motors’ financial statements affected by borrowers not making auto-loan payments?
February 10, 2015 0 Comments
Borrowers who took out new car loans during 2014 are missing payments at the highest level since the recession. Regulators and analysts are beginning to be concerned about the quality of car loans, worrying that borrowers have taken on more debt than they can handle. Overall auto-loan delinquencies are higher now than one year ago, […]
Continue readingWhat does Walt Disney’s Form 10-K communicate about its unearned revenue and accrued revenue?
February 5, 2015 0 Comments
Over the past year, The Walt Disney Company (DIS) has made the news because it increased its ticket prices at Walt Disney World in Florida, Disneyland Park in California, and other parks around the world. Ticket revenue, however, is not its only source of revenue. The following is an excerpt from the Notes to Consolidated […]
Continue readingHow will Samsung’s stock buyback impact its assets, liabilities, and equity?
February 3, 2015 0 Comments
In late 2014, Samsung Electronics, the smartphone maker, announced that it would be buying back $2 billion of its own shares. Specifically, it expects to buy back 1.65 million common shares and 250,000 preferred shares. Samsung is also expected to increase its dividend in 2015. Questions What is the impact on Samsung’s balance sheet (assets, […]
Continue readingHow does a convertible bond issued by Fiat Chrysler Automobile affect the company’s balance sheet?
January 23, 2015 0 Comments
Fiat Chrysler Automobiles (FCA) launched a $2.5 billion convertible bond issue in December 2014. FCA will be using the funds generated from the bond issue to help to turn its Jeep, Maserati, and Alfa Romeo brands into global brands, competing directly against Volkswagen and BMW in the premium car market. The bond issue will mature […]
Continue readingWhat impact do lower fuel costs and other changes have on an airline’s net income?
January 16, 2015 0 Comments
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 […]
Continue readingWhich costs will be capitalized by United related to its 23,000 iPhone 6 Plus handsets for flight attendants?
January 9, 2015 0 Comments
In 2015, United Continental Holdings, Inc., (UAL), will be purchasing 23,000 iPhone 6 Plus handsets for its flight attendants to use in-flight for retail transactions. The phones will also be used for email, United’s internal network, and various policies and procedures manuals. Beyond the cost of the iPhone 6 Plus handsets, United will have to […]
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