General Motors (GM) is considering a $37-million expansion to one of its Michigan assembly plants. The Buick Enclave, Chevrolet Traverse, and GMC Acadia crossovers are built at the Lansing Delta Township plant. GM officials have not announced what the $37-million expansion will include but they have applied for tax incentives from the City of Lansing […]
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Tag Archives: teaching accounting
How does outfitting AMC movie theaters with recliners affect the company’s break even point and operating leverage?
July 18, 2014 
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AMC Entertainment Holdings Inc. is spending millions of dollars to install recliner-seating in its theaters. AMC Entertainment Holdings Inc. is outfitting about 1,800 of its nearly 3,000 auditoriums with recliners for a total cost of about $600 million. The recliners will remove up to two-thirds of the seating capacity in each theater, due to […]
Continue readingWhat is the impact on American Apparel’s current ratio of the loan it received from Standard General?
July 10, 2014 0 Comments
American Apparel has been in the news in recent weeks. Its board fired CEO Dov Charney amid several reports of his misdeeds. The company has also lost $270 million over the past three years. Last week, one of American Apparel’s creditors, Lion Capital, called a $10 million loan it had made to American Apparel. (“Calling” […]
Continue readingWhat are implications of Casella Waste Systems changing its year end from April 30 to December 31?
July 2, 2014 0 Comments
Casella Waste Systems, Inc., is a solid waste services company operating primarily in the eastern United States. Its fiscal year end has historically been April 30. In recent years, the region has experienced severe weather in the spring. The severe weather would drive down earnings for Casella in the last few months of its fiscal […]
Continue readingWhat are the direct and indirect costs involved with manufacturing Oscars?
May 12, 2014 0 Comments
The Academy Awards is an annual American awards ceremony honoring achievements in the film industry. Winners receive a statue officially named the “Academy Award of Merit.” However, these statues are much better known by the nickname of “Oscars.” Each Oscar statue weighs 8.5 pounds and takes three to four weeks to manufacture. The statues have […]
Continue readingWhat are the characteristics of the $2 billion in bonds that Tesla Motors is issuing?
May 7, 2014 0 Comments
Tesla Motors, Inc., is an American company that designs, manufactures, and sells electric cars and components. It is publicly traded on the NASDAQ under the symbol TSLA. Tesla has plans to build a $4 to $5 billion battery production plant beginning in 2017. To help to pay for the new manufacturing facility, Tesla is issuing […]
Continue readingWhat is the balance sheet impact of the $400 million Netflix just borrowed?
April 28, 2014 0 Comments
In February 2014, Netflix took out a $400 million loan. Netflix is using these funds to help to create original programming, such as its hit series “House of Cards,” and to expand to Europe. Netflix is a publicly-held company trading on NASDAQ under the symbol NFLX. On March 10, 2014, Netflix common stock was selling […]
Continue readingHow will the 3.9% increase in FedEx Freight shipping rates impact the breakeven point for an Etsy jewelry artist?
April 24, 2014 0 Comments
FedEx Corp announced that it would be raising its shipping rates by an average of 3.9% on March 31, 2014. The rate change applies to FedEx Freight shipments within and between the United States, Canada, and Mexico. The FedEx Freight segment is a provider of less-than-truckload (LTL) freight services, which is the shipping of relatively […]
Continue readingHow does Birchbox report its issuance of $50 million in equity?
April 21, 2014 0 Comments
Birchbox, Inc., is privately-held. It was founded in 2010 by Hayley Barna and Katia Beauchamp and has its headquarters in New York City. Birchbox offers a subscription service that delivers samples of beauty products to its subscribers. Subscribers can also purchase full-size versions of the products on Birchbox’s website. Birchbox currently has more than 400,000 […]
Continue readingHow did State Street Corp. achieve cost savings from its co-working building design in Boston?
April 10, 2014 0 Comments
“Co-working” is a term to describe a work environment where coworkers share the same office but not necessarily the same boss. Co-working centers feature large, central open spaces with couches, coffee tables, and casual furniture. Some private, traditional offices typically are available for occasional use. The spaces are designed to foster socializing and exchanging ideas […]
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