Background In the fourth quarter of 2013, hackers broke into Target Corporation’s system and stole the names and credit card information for up to 70 million customers. This data breach is among the largest data breaches in U.S. history and lawsuits against Target Corporation are being filed by several parties including customers, credit card companies, […]
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Tag Archives: teaching accounting
What is the impact on cash from Sony selling its old Tokyo headquarters?
March 24, 2014 
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In March 2014, Sony signed a deal to sell its old Tokyo headquarters and a nearby building for $156 million. This building served as Sony’s headquarters from 1990 to 2007 and is thought of as the birthplace of the company, where Sony founders worked on the Walkman and Trinitron TV. This building sale follows the […]
Continue readingWould R.S. Owens, the manufacturer of Oscar statues, use job costing or process costing?
March 21, 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 readingWill Uber capitalize or expense the renovations to its headquarters in San Francisco?
March 17, 2014 0 Comments
Uber, is a startup with a mobile app for connecting passengers with drivers of vehicles for hire. Uber arranges rides in several North American cities (for example, New York, Chicago, and San Francisco) and has recently expanded to include countries outside of North America (for example, United Kingdom and France). Recently, it was reported that […]
Continue readingHow would Crocs recognize the preferred stock issued to Blackstone Group?
March 3, 2014 0 Comments
At the end of December 2013, Crocs Inc. announced that Blackstone Group is investing $200 million into the footwear company in the form of a preferred stock purchase. In three years, the preferred stock shares owned by Blackstone Group will convert into common shares if the Crocs common stock market price rises to a certain […]
Continue readingWhat is the balance sheet impact of Crocs’ repurchase of its own shares of stock?
February 3, 2014 0 Comments
At the end of December 2013, Crocs Inc. announced that Blackstone Group is investing $200 million into the footwear company in the form of a preferred stock purchase. Crocs plans to use the $200 million plus another $150 million of cash it already has on hand to repurchase its own common shares during the first […]
Continue readingHow is the term “depreciation” used in a news story about the resale value of electric cars?
January 27, 2014 0 Comments
A recent news story in USA Today was entitled “Depreciation hits electric cars hard.” According to USA Today, a Ford Focus Electric automobile will be worth about 20% of its initial $35,995 list price after five years, while a conventional Ford Focus (gas-engine) will be worth about 36% of its initial value. The 2013 Nissan […]
Continue readingShould the original cost of the leftover 10 million pounds of Mighty Wings matter to McDonald’s decision makers?
January 20, 2014 0 Comments
In the first half of 2013, McDonald’s bought and stockpiled about 50 million frozen chicken wings for a promotion it was planning for fall 2013. In the fall 2013, McDonald’s debuted Mighty Wings, a menu item that would be available only through the end of November 2013. When Mighty Wings came out, McDonald’s did not […]
Continue readingWhat information can be gathered from Barnes & Noble’s statement of cash flows?
January 10, 2014 0 Comments
Barnes & Noble is a retailer of content, digital media, and educational products. It has nearly 700 bookstores in 50 states and also has a large e-commerce presence on the Web. In the past few years, there has been speculation that Barnes & Noble will not survive in the long-term. Among other news stories, the […]
Continue readingHow much does Seacoast Banking Corporation of Florida pay to redeem one share of its preferred stock?
January 6, 2014 0 Comments
The following is from a press release from Seacoast Banking Corporation of Florida, the holding company for Seacoast National Bank, dated November 29, 2013: “…Seacoast National Bank…announced it has issued a notice to redeem, subject to regulatory approval, all of its 2,000 shares of Fixed Rate Cumulative Perpetual Preferred Stock, Series A… for an aggregate […]
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Accounting in the Headlines 