Urban Outfitters, Inc., is a specialty retailer, offering a wide selection of clothing, accessories, and other items. The Fiscal Year 2013 Annual Report for Urban Outfitters, Inc., can be found here. Page F-2 (page 54 in the pdf document) of that annual report contains the “Report of Independent Registered Public Accounting Firm,” or the auditor’s […]
Continue readingWhat are “loan reserves” at Bank of America?
November 21, 2013 
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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 […]
Continue readingWhat is break even for a food vendor at The Ohio State Fair?
November 19, 2013 0 Comments
The 160th Ohio State Fair in 2013 had an estimated 903,824 visitors during the twelve days of the fair, which was record-breaking attendance. The high attendance led to a record-breaking profit of about $400,000 for the fair. Among the sources of revenue for The Ohio State Fair are the revenues generated from the food vendors. […]
Continue readingHow do the added costs to produce BK’s new lower-calorie fries affect the fry breakeven point?
November 4, 2013 0 Comments
Burger King has launched a new kind of French fries called “Satisfries.” These new fries are made with a batter that is less porous and absorbs less oil than Burger King’s regular fries, resulting in 20 per cent fewer calories in Satisfries than regular fries. Satisfries contain 340 calories versus 410 calories in regular fries. Consumers […]
Continue readingWhat is the gross margin on the Apple iPhone 5S and 5C?
October 29, 2013 1 Comment
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 readingWhat are the costs and ethics involved in a recall of surge protectors?
October 22, 2013 0 Comments
In October 2013, Schneider Electric recalled 15 million of its SurgeArrest surge protectors. The models recalled were the series APC 7 and APC 8 (manufactured before 2003.) The company warned at that time that the surge protectors could overheat, smoke, and start a fire. These surge protectors were manufactured before 2003; between the date of […]
Continue readingMeet more students in your large classes by offering a “Get Out of Jail Free” opportunity
October 18, 2013 0 Comments
My classes are generally pretty large, with anywhere from 100 to 250 students enrolled in a particular section. It is too easy to go through the entire semester without getting to know too many names – that is a lot of students! In many ways, I miss the days of having smaller sections where I […]
Continue readingHow will the increasing cost of chocolate impact Hershey’s variances?
October 15, 2013 0 Comments
The price of chocolate had been predicted to increase rapidly beginning in late 2013 and continue into 2014, according to the Wall Street Journal. The price increase is due to multiple factors, including a shortage of cocoa beans and an increase in demand by consumers. Although the demand for all chocolate has been increasing, consumer […]
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 assumptions go into preparing a budget for a New York Fashion Week show?
October 4, 2013 0 Comments
In a recent news article in Business Insider, estimates of the various costs associated with putting on a show during New York Fashion Week were listed. These cost estimates are listed below: Rent $0 to $100,000 Hair and makeup: $0 to $100,000 Stylist: $5,000 to $20,000 Public relations: $10,000 to $20,000 Models: $0 to $200,000 […]
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Accounting in the Headlines 