According to a recent Wall Street Journal article (“Big Banks Are Adding Profits With ‘Reserve’ Cash, October 25, 2013” , Bank of America has indicated that its credit quality has increased since the financial crisis of 2008, due both to increased loan standards and rising house prices. Bank of America released $1.4 billion of loan reserves […]
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What is the gross margin on the Apple iPhone 5S and 5C?
October 29, 2013 
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According to the GottaBe Mobile website in September 2013, the Apple iPhone 5S with 16 GB memory sells off-contract for $649, while the iPhone 5C with 16 GB memory sells off-contract for $549. The same phones with 32 GB memory sell off-contract for $749 and $649. According to Bloomberg Businessweek and IHS iSuppli, the iPhone […]
Continue readingStudent handout: Four steps to determine what to debit or credit
October 8, 2013 0 Comments
Here is a handy list of questions to help guide students through the thought process involved with determining what to debit or credit in a given transaction. (I also have this list in pdf format for handout purposes.) Step 1: Pick ONE account that is affected by this transaction Step 2: Is this account you […]
Continue readingWhat do the dates mean in the press release for Pier 1’s quarterly cash dividend announcement?
September 29, 2013 0 Comments
Pier 1 declared a quarterly cash dividend of $0.05 per common share on September 27, 2013. The press release read: “Sep. 27, 2013– Pier 1 Imports, Inc. (NYSE:PIR) today announced that its Board of Directors declared a $0.05 per share quarterly cash dividend on the Company’s outstanding shares of common stock. The $0.05 quarterly cash dividend will be paid on November 6, […]
Continue readingWhat does the two-for-one stock split at Tractor Supply mean for shareholders?
September 27, 2013 0 Comments
The Tractor Supply Company (TSCO) declared a two-for-one stock split of its common stock on August 29, 2013. The following news release appeared in PR Newswire in 2013: “BRENTWOOD, Tenn., Aug. 29, 2013 /PRNewswire/ — Tractor Supply Company (NASDAQ: TSCO), the largest retail farm and ranch store chain in the United States, today announced that its Board of Directors […]
Continue readingHow many shares of stock would be issued in LinkedIn’s $1 billion stock offering?
September 23, 2013 0 Comments
In September 2013, LinkedIn (LNKD) filed paperwork with the SEC for a $1 billion stock offering of its Class A common stock. LinkedIn reported that it would be using the proceeds from the stock issuance for working capital, expansion of product and sales organizations, and capital expenditures. On August 30, 2013 (a few days before […]
Continue readingWhat does the 2% stock dividend at Arrow Financial Services mean for shareholders?
September 10, 2013 0 Comments
Arrow Financial Corporation (AROW) declared a stock dividend on August 28, 2013. The following news release appeared in PR Newswire: “GLENS FALLS, N.Y., Aug. 28, 2013 /PRNewswire/ — Thomas J. Murphy, President and CEO, announced that a 2% stock dividend was declared on August 28, 2013 and will be distributed on September 27, 2013. Shareholders of record on September 19, 2013, will […]
Continue readingWhat were the intangible assets in Yahoo’s purchase of Tumblr?
August 10, 2013 0 Comments
Yahoo purchased Tumblr, a blog-hosting website, in May 2013 for approximately $990.2 million. The fair values of the net tangible assets and identifiable intangible assets acquired from Tumblr were as follows (in millions): Cash $ 16.6 Other tangible assets 74.0 Identifiable intangible assets: Developed technology 23.7 Customer contracts 182.4 […]
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