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 […]
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Tag Archives: teaching accounting
What happens to the breakeven point when Sports Illustrated lays off all six staff photographers and uses freelancers instead?
March 13, 2015 
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Sports Illustrated announced in late January 2015 that it would be laying off all six of its staff photographers. Instead, it will be using freelance photographers around the world. Sports Illustrated is one of 90 magazines owned by Time Inc. (TIME). Published 56 times a year, Sports Illustrated is read by over 23 million people […]
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 readingHow would using drones or bike messengers to deliver products affect Amazon’s cost structure and risk?
February 27, 2015 0 Comments
Amazon is a huge retailer, but it still struggles to compete against bricks-and-mortar stores when customers want the item “right now.” Amazon is currently testing two options to provide one hour deliveries: drones and bike messengers. A drone is an aircraft that flies without a human on board. It may be operated via remote control, […]
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 readingWould a Pizza Studio franchisee need to use job-costing or process costing for its made-to-order pizzas?
February 20, 2015 0 Comments
Pizza Studio is a relatively new pizza chain that takes the made-to-order model used by Chipotle and Subway and applies it to pizzas. At a counter, customers order their pizzas with exactly the crust, sauce, cheese, and toppings they want – and then watch as the pizza travels through a conveyor-belt oven, being blasted with […]
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 […]
Continue readingWhat does Coca-Cola’s Form 10-K communicate about its short-term investments?
February 16, 2015 0 Comments
Coca-Cola is firmly entrenched in our history and culture. On February 28, 2015, a Coca-Cola exhibition will open at the High Museum of Art in Atlanta. The exhibition will feature paintings, photographs, and other items related to Coke’s iconic curved bottle. The exhibition will run through October 4, 2015. (Fun fact: Coca-Cola is sold in […]
Continue readingWhy is Coca-Cola using zero-based budgeting?
February 13, 2015 2 Comments
In recent years, The Coca-Cola Company (KO) is facing decreased global demand for its soft drinks due to customer health concerns about the sugary drinks. It has responded to decreased demand with a variety of ways, including cost cutting measures. In October 2014, Coke announced a $3 billion cost-cutting effort that would impact the entire […]
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