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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Will Uber capitalize or expense the renovations to its headquarters in San Francisco?
March 17, 2014 
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Uber, is a startup with a mobile app for connecting passengers with drivers of vehicles for hire. Uber arranges rides in several North American cities (for example, New York, Chicago, and San Francisco) and has recently expanded to include countries outside of North America (for example, United Kingdom and France). Recently, it was reported that […]
Continue readingWhat costs will be expensed versus capitalized in Applebee’s investment in tableside tablets for its restaurants?
March 10, 2014 0 Comments
At Applebee’s, Presto tablets by E la Carte are being installed at every table. In total, Applebee’s will be purchasing 100,000 tablets. Customers will be able to pay their food bill and order appetizers and desserts using the tablets. In addition to the initial purchase price of the tablet hardware and various other costs, Applebee’s […]
Continue readingHow would Crocs recognize the preferred stock issued to Blackstone Group?
March 3, 2014 0 Comments
At the end of December 2013, Crocs Inc. announced that Blackstone Group is investing $200 million into the footwear company in the form of a preferred stock purchase. In three years, the preferred stock shares owned by Blackstone Group will convert into common shares if the Crocs common stock market price rises to a certain […]
Continue readingHow does the SEC allege that Diamond Foods fraudulently increased earnings?
February 19, 2014 0 Comments
Diamond Foods produces and markets Emerald snack nuts, PopSecret popcorn, and several other snack brands. The Securities and Exchange Commission (SEC) recently charged Diamond and two of the company’s former executives (the CEO and the CFO) with misleading investors by fraudulently manipulating income (see “Diamond Foods to Pay $5 Million to Settle SEC Fraud Charges,” […]
Continue readingWhat is the balance sheet impact of Crocs’ repurchase of its own shares of stock?
February 3, 2014 0 Comments
At the end of December 2013, Crocs Inc. announced that Blackstone Group is investing $200 million into the footwear company in the form of a preferred stock purchase. Crocs plans to use the $200 million plus another $150 million of cash it already has on hand to repurchase its own common shares during the first […]
Continue readingHow is the term “depreciation” used in a news story about the resale value of electric cars?
January 27, 2014 0 Comments
A recent news story in USA Today was entitled “Depreciation hits electric cars hard.” According to USA Today, a Ford Focus Electric automobile will be worth about 20% of its initial $35,995 list price after five years, while a conventional Ford Focus (gas-engine) will be worth about 36% of its initial value. The 2013 Nissan […]
Continue readingWhat information can be gathered from Barnes & Noble’s statement of cash flows?
January 10, 2014 0 Comments
Barnes & Noble is a retailer of content, digital media, and educational products. It has nearly 700 bookstores in 50 states and also has a large e-commerce presence on the Web. In the past few years, there has been speculation that Barnes & Noble will not survive in the long-term. Among other news stories, the […]
Continue readingHow much does Seacoast Banking Corporation of Florida pay to redeem one share of its preferred stock?
January 6, 2014 0 Comments
The following is from a press release from Seacoast Banking Corporation of Florida, the holding company for Seacoast National Bank, dated November 29, 2013: “…Seacoast National Bank…announced it has issued a notice to redeem, subject to regulatory approval, all of its 2,000 shares of Fixed Rate Cumulative Perpetual Preferred Stock, Series A… for an aggregate […]
Continue readingHow does a stock buyback impact AutoZone’s balance sheet?
January 2, 2014 0 Comments
In December 2013, the Board of Directors of AutoZone Inc., an auto parts retailer, approved an increase of $750 million in its stock buyback program. Since 1998, AutoZone’s board of directors has approved $14.2 billion in buybacks. Questions On the date of the announcement that AutoZone has authorized the increase in its share buyback program, […]
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