Founded in 1988, Lululemon Athletica Inc. (LULU) is an athletic apparel company headquartered in Canada. Lululemon has helped to popularize the ubiquitous yoga pants in the U.S. While it has experienced some sales declines due to a recall of yoga pants in 2013 for being too sheer, Lululemon has revamped its product line to update […]
Continue readingWhat are the product and period costs associated with a Broadway theater bar?
January 26, 2016 
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Broadway theaters saw record attendance in the 2014 – 2015 season, with ticket sales up 7.3% over the prior season (“Theater Bars Are a Smash Hit on Broadway,” Wall Street Journal, December 28, 2015.) As a result, private hospitality companies who operate bars in Broadway theaters have experienced sales growth as well. One such hospitality […]
Continue readingWhich contingent liabilities resulting from the Volkswagen (VW) emissions cheating scandal would be recognized or disclosed in Volkswagen Group’s financial statements?
January 19, 2016 2 Comments
Volkswagen manufactures the iconic Beetle in addition to other models including the Passat, the Jetta, and others. Volkswagen Group (VW) has been embroiled in an emissions cheating scandal discovered in 2015. Essentially, what happened is that VW’s engineers developed and inserted software in VW car engines to cheat on the emissions testing process, making its […]
Continue readingHow would the breakeven sales of Cafe Edison, a New York City diner, have been affected by a rent increase?
January 12, 2016 2 Comments
Recently, several traditional New York City diners have closed, including Cafe Edison, La Parisienne, and Three Star. Real estate costs in New York City continue to increase, thus fueling rent hikes for small businesses like the Cafe Edison. The diner closures have been attributed to both rent hikes and a decline in the number of […]
Continue readingWhat costs would be relevant when Amazon considers whether to operate its own cargo freight service?
January 7, 2016 0 Comments
Since its inception, Amazon has relied on third-party shippers, such as UPS and FedEx. In 2013, Amazon experienced a wave of last-minute orders and bad weather left UPS and other shippers unable to deliver Amazon’s packages. Amazon issued apologies and $20 gift cards to customers, but its reputation suffered from the unhappy customers who were […]
Continue readingWhen would L.L. Bean recognize sales revenue from the sale of its backordered Bean boots?
January 4, 2016 2 Comments
L.L. Bean operates two factories that produce its popular Bean boots (also known as “duck boots”) in its home state of Maine. Since L.L. Bean prides itself on manufacturing its boots in Maine and not outsourcing, backorders for its boots can be high. In 2014, L.L. Bean sold about 450,000 pairs of the boots. At […]
Continue readingWhat happens from an accounting standpoint when FNB Bancorp issues a stock dividend?
December 10, 2015 0 Comments
FNB Bancorp recently declared a stock dividend, according to a recent news release[1]: FNB Bancorp (OTCQB: FNBG), the holding company for First National Bank of Northern California, announced that its Board of Directors has declared a stock dividend of approximately 210,709 shares, payable at the rate of one share of Common Stock for every twenty (20) shares of […]
Continue readingWhat are the dates associated with Molson Coors Brewing Company’s dividend announcement?
December 3, 2015 0 Comments
On November 12, 2015, Molson Coors Brewing Company (TAP) released a dividend announcement. An excerpt from that news release is as follows: DENVER & MONTREAL–(BUSINESS WIRE)–Nov. 12, 2015–Molson Coors Brewing Company (NYSE: TAP) today declared a regular quarterly dividend on its … common shares of US $0.41 per share, payable December 15, 2015, to shareholders of record on November 30, 2015. Questions […]
Continue readingWhat type of responsibility center would a Kohl’s Café within the department store be considered?
November 24, 2015 0 Comments
In an effort to increase the number of shoppers coming into its stores and the length of time those shoppers stay, Kohl’s (KSS) is adding a small café (Kohl’s Café) to each of two of its department stores in the Milwaukee, Wisconsin area. Each café will sell Caribou Coffee items including lattes, cappuccinos, and other […]
Continue readingAre the articles of secondhand clothing offered for sale on thredUP’s online store included in inventory on thredUP’s balance sheet?
November 23, 2015 0 Comments
ThredUP is a startup online consignment and thrift store. Consumers can buy like-new, carefully vetted brand-name clothing from thredUP’s online store at discounts of up to 80% off of the original retail prices. Consumers can also send in their unwanted clothing articles for thredUP to resell. ThredUP’s professional buyers go through the articles of clothing […]
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