In February 2015, The Walt Disney Company (DIS) unveiled its new interactive queue for one of its oldest attractions at its Magic Kingdom Park (Walt Disney World) in Orlando, Peter Pan’s Flight (see video here.) As guests wait in line, they enter into the Darling’s foyer. From the foyer, guests head into the children’s nursery. […]
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Tag Archives: teaching accounting
How are General Motors’ financial statements affected by borrowers not making auto-loan payments?
February 10, 2015 
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Borrowers who took out new car loans during 2014 are missing payments at the highest level since the recession. Regulators and analysts are beginning to be concerned about the quality of car loans, worrying that borrowers have taken on more debt than they can handle. Overall auto-loan delinquencies are higher now than one year ago, […]
Continue readingHow does the rising cost of hazelnuts impact NUTELLA®?
February 6, 2015 0 Comments
Hazelnuts are used in high-end chocolate items such as pralines and truffles. In addition, hazelnuts are used in Nutella spread. Turkey supplies more than 70% of the world’s hazelnuts. In 2014, there was a widespread frost in Turkey that damaged hazelnut flowers and cut production of hazelnuts by 28%. The price of hazelnuts more than […]
Continue readingWhat does Walt Disney’s Form 10-K communicate about its unearned revenue and accrued revenue?
February 5, 2015 0 Comments
Over the past year, The Walt Disney Company (DIS) has made the news because it increased its ticket prices at Walt Disney World in Florida, Disneyland Park in California, and other parks around the world. Ticket revenue, however, is not its only source of revenue. The following is an excerpt from the Notes to Consolidated […]
Continue readingHow will cost standards be impacted at PEZ Candy Inc. by the rising cost of sugar and labor?
January 27, 2015 0 Comments
PEZ Candy Inc. produces the popular small candy that is dispensed in collectible flip-top dispensers. PEZ candy was invented as a breath mint in Vienna, Austria, in 1927. The name PEZ is derived from “pfefferminz” which is the word for peppermint in German. In the United States, PEZ candies are produced in a factory in […]
Continue readingHow does a convertible bond issued by Fiat Chrysler Automobile affect the company’s balance sheet?
January 23, 2015 0 Comments
Fiat Chrysler Automobiles (FCA) launched a $2.5 billion convertible bond issue in December 2014. FCA will be using the funds generated from the bond issue to help to turn its Jeep, Maserati, and Alfa Romeo brands into global brands, competing directly against Volkswagen and BMW in the premium car market. The bond issue will mature […]
Continue readingWhat items are product costs versus period costs at the U.S. PEZ Candy Inc. facilities in Connecticut?
January 20, 2015 0 Comments
PEZ Candy Inc. produces the popular small candy that is dispensed in collectible flip-top dispensers. In the United States, PEZ candies are produced in a factory in Connecticut. The Connecticut location also houses PEZ’s US headquarters and a PEZ Visitors Center. PEZ candy is made from sugar, fruit flavoring, coloring, and corn syrup; the ingredients […]
Continue readingWhat impact do lower fuel costs and other changes have on an airline’s net income?
January 16, 2015 0 Comments
American Airlines Group (AAL), the world’s biggest airline, has been reporting record profits in recent quarters. United Continental Holdings and Southwest Airlines also reported record profits. Part of what has contributed to the record profits has been the decline in the cost of oil. The price of oil has fallen during 2014; we are spending […]
Continue readingShould the City of Ravenna outsource its income tax department?
January 13, 2015 0 Comments
The City of Ravenna in Ohio has an income tax on its residents of 2%. For many years, the City had its own income tax department with two employees who processed all of the tax returns from residents. The annual cost of that income tax department was most recently estimated to be $173,000 (“Ravenna will […]
Continue readingWhich costs will be capitalized by United related to its 23,000 iPhone 6 Plus handsets for flight attendants?
January 9, 2015 0 Comments
In 2015, United Continental Holdings, Inc., (UAL), will be purchasing 23,000 iPhone 6 Plus handsets for its flight attendants to use in-flight for retail transactions. The phones will also be used for email, United’s internal network, and various policies and procedures manuals. Beyond the cost of the iPhone 6 Plus handsets, United will have to […]
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