Why would Boeing outsource its electronics production and then brings its manufacture back in-house?

In the early 2000s, The Boeing Company (NYSE: BA) outsourced key portions of its aircraft manufacturing and design operations, including electronics and central computers. Beginning in 2007, Boeing’s 787 Dreamliner (a new model for Boeing) was assembled in the U.S., with global subcontractors assigned the work of assembling key sections of the 787. Subcontractors also […]

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What information can be calculated from McDonald’s 2016 trial balance?

McDonald’s Corporation (NYSE: MCD) is a publicly held corporation and issued its financial statements for 2016 in 2017. To follow is a condensed and adapted trial balance as of December 31, 2016, that was constructed from those financial statements. Please note that the accounts have been adapted and condensed for educational use and should not […]

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Why is internal control important for companies – and for students – to understand?

An article in Accounting Today from September 7, 2017, has the headline “Internal control weaknesses correlate with financial fraud.” Three accounting researchers* have found that “…the incidence of fraud disclosures at companies previously found by auditors to have material weaknesses in their internal controls is approximately 80 to 90 percent greater than companies on average, […]

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Register for Snapchat 101: Engaging Students in Accounting, an IMA Faculty Friday Webinar

On Friday, September 29, 2017, I will be the speaker for the Institute of Management Accountants (IMA) Faculty Friday Webinar entitled “Snapchat 101: Engaging Students in Accounting.” Snapchat can be a pretty neat tool for engaging with students, especially those in online classes or in large classes. I will be talking first about how to […]

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Would Subway have disclosed or accrued for the class-action lawsuit filed against it for the length of its footlong subs?

Nine Subway customers joined forces to file a class-action lawsuit against Subway, alleging that its footlong submarine sandwiches were not actually a foot, or 12 inches, in length, but were closer to 11 inches.  The class action suit was filed in 2013 and Subway settled a few years later, agreeing to pay the plaintiffs’ attorneys […]

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What is the impact on Netflix’s assets, liabilities, and equity from its new credit line?

In July 2017, Netflix, Inc., (NASDAQ: NFLX) obtained a new credit line for $500 million through five lenders. This credit line means that Netflix will be able to borrow as it needs cash to fund its operations. According to Netflix’s regulatory filing, it plans to use the funds for operations and general corporate needs. The […]

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What costs would the New England Patriots have considered when analyzing the purchase of team planes and when pricing the rental of its team planes?

The New England Patriots recently became the first National Football League (NFL) franchise to buy its own team aircraft. The Patriots purchased two Boeing 767 planes for a total of about $10 million. Both planes have been painted with the team’s logo and colors. The Patriots will use the planes for the ten round trips […]

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Karen Braun’s 7 Excel projects for managerial accounting

If you teach managerial accounting, you may want to look at Dr. Karen Braun’s Excel projects for managerial accounting. She has created seven Excel projects on various topics in managerial accounting, complete with step-by-step student instructions and instructor solutions. The topics include: Job costing Cost behavior CVP analysis Process costing Budgeting Flexible budgeting Division evaluation […]

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What information is provided in McDonald’s basic financial statements?

McDonald’s Corporation (NYSE: MCD) is a publicly held corporation with more than $31 billion in assets. It started in 1940 as a BBQ restaurant in San Bernardino, California. In 1948, McDonald’s switched to burgers, shakes, potato chips, and pie. Its Golden Arches are generally believed to be the most recognized symbol in the world. To […]

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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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