In a recent New York Times article (“Big Companies Pay Later, Squeezing Their Suppliers,” April 6, 2015), it was reported that several large companies are forcing their much-smaller suppliers to extend longer payment terms. Several large companies, such as Procter & Gamble, Heinz, and Anheuser-Busch, have told their suppliers that they want three or four […]
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Tag Archives: financial accounting
What does Kohl’s 2015 Form 10-K communicate about its stockholders’ equity?
April 14, 2015 
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Kohl’s Corporation (KSS) operates department stores in 49 states in the U.S. and has annual sales in excess of $18 billion. Its fiscal year ends on the Saturday closest to January 31 each year. Kohl’s has several line items comprising its stockholders’ equity. See the excerpts to follow from Kohl’s 2015 Form 10-K: its Consolidated […]
Continue readingWhat is the accounting impact of Dunkin’ Donuts’ dividend declaration?
March 31, 2015 0 Comments
Dunkin’ Brands (NASDAQ: DNKN) declared a dividend of $0.265 on February 5, 2015, to be paid on March 18, 2015, to shareholders of record as of the close of business on March 9, 2015. This dividend is a 15% increase over the prior quarter’s dividend. Questions On which date will Dunkin’ Brands record a liability […]
Continue readingWhat information is in the auditor and management letters in The J.M. Smucker Company’s Form 10-K?
March 27, 2015 0 Comments
The J. M. Smucker Company (SJM) was started in 1897 by Jerome Monroe Smucker in Orrville, Ohio. The J. M. Smucker Company has several well-known brands in its lineup, including Jif, Folgers, Pillsbury, and Hungry Jack. Since The J. M. Smucker Company is publicly-held, it issues a Form 10-K each year. It is also required […]
Continue readingWhat does Coca-Cola’s Form 10-k communicate about its accounts receivable?
March 20, 2015 0 Comments
The Coca-Cola Company (KO), like other U.S. publicly-held companies, files its financial statements in an annual filing called a Form 10-K with the Securities & Exchange Commission (SEC). Coca-Cola has several assets that are listed on its balance sheet. Let’s look at what is reported on Coca-Cola’s Form 10-K regarding its accounts receivable. See the […]
Continue readingWhen do Keurig and Dr Pepper record a transaction resulting from their exclusive arrangement for Keurig’s upcoming Keurig Cold machine?
March 17, 2015 0 Comments
Keurig Green Mountain, Inc., (GMCR) recently announced that it had signed an exclusive deal with Dr Pepper Snapple Group (DPS) for rights to make pod-versions of Dr Pepper Snapple products in the upcoming Keurig Cold machine (anticipated release date in fall 2015.) Questions On the date of the exclusive contract signing, would Keurig record an […]
Continue readingHow does the new equity issued by Sonos, the wireless internet-enabled speaker maker, affect its financial statements?
March 10, 2015 0 Comments
Sonos is a maker of wireless internet-enabled speaker systems. It was founded in California in 2002 and has experienced rapidly growing sales. Its CEO, John MacFarlane, indicated that Sonos would exceed $1 billion in sales in 2014. In December 2014, the privately-held Sonos issued an additional $130 million in new equity. It will be using […]
Continue readingWould Hyundai Motor capitalize or expense the major expenditures it plans for 2015?
March 3, 2015 0 Comments
In January 2015, Hyundai Motor Group (KRX), headquartered in Seoul, South Korea, announced plans to spend over $74 billion in the next four years. This spending plan is in response to pressure from the South Korean government to stop hoarding cash and instead use the cash to make investments and to hire more workers. Hyundai […]
Continue readingWhen does SurveyMonkey recognize revenue from its Platinum annual subscription plans?
February 24, 2015 0 Comments
SurveyMonkey is an online survey company that allows its subscribers to customize and administer surveys. It recently made the news for raising another $250 million in equity funding (“SurveyMonkey is worth $2 billion after new $250 million fundraising round, Fortune, December 15, 2014.) (Note: SurveyMonkey is privately held. The founder says the company will not […]
Continue readingWhat internal control weakness at Netflix allowed its former VP of IT operations to allegedly receive kickbacks from technology firms?
February 17, 2015 1 Comment
In November 24, 2014, Netflix filed a lawsuit against its former vice president of IT operations, Mike Kail, alleging fraud, breach of fiduciary duties, and other charges. Here is an excerpt from the lawsuit filing in Superior Court of the State of California, Santa Clara County:. “…During his tenure at Netflix, including as Netflix’s Vice […]
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