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 
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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 do costs of a fashion truck compare with the costs of a bricks-and-mortar store?
February 27, 2014 0 Comments
Fashion trucks are starting to pop up across the country. These fashion trucks are fashion boutiques on wheels. The owners of the fashion trucks drive them from locale to locale, seeking to bring clothing and accessories to urban dwellers who value the convenience of a mobile store front. Emily Duran operates the light pink Passionista […]
Continue readingHow does the renegotiated labor contract impact the standard cost of cars for GM?
February 24, 2014 2 Comments
A few years ago, Chrysler renegotiated its labor contract with the United Auto Workers (UAW) union. New hires were to be paid $14 per hour, down from the $28 per hour veteran workers received. That cut resulted in an average combined wage and benefit rate per hour in 2011 of $49, compared to $76 per […]
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 NPV of Applebee’s investment in tableside tablets for its restaurants?
February 14, 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. The tablets are not replacing wait staff; wait staff will still take the orders for entrees. […]
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 readingShould the original cost of the leftover 10 million pounds of Mighty Wings matter to McDonald’s decision makers?
January 20, 2014 0 Comments
In the first half of 2013, McDonald’s bought and stockpiled about 50 million frozen chicken wings for a promotion it was planning for fall 2013. In the fall 2013, McDonald’s debuted Mighty Wings, a menu item that would be available only through the end of November 2013. When Mighty Wings came out, McDonald’s did not […]
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Accounting in the Headlines 