RIM PlayBook sales hurt earnings targets

Posted by & filed under Financial Accounting, Managerial Accounting.

Inventory Write-Down: Research In Motion Ltd. will write off much of its PlayBook inventory and book a $360-million after-tax charge due to poor sales and discounting of the tablet, a move that will impact the BlackBerry maker’s financial targets.             “RIM is committed to the BlackBerry PlayBook and believes the… Read more »

What Does It Cost To Make An Apple IPhone4?

Posted by & filed under Accounting Principles, All Articles, Cost Accounting, Managerial Accounting.

According to market research firm, Apple’s iPhone 4 wireless handset components cost about  $187.51. The iPhone 4 sells for $199 and $299. The most expensive component is the LG display that costs $28.50. According to the consultant, the iPhone has typically hovered around the $170-to-$180 cost range because Apple seems to be trying to hit… Read more »

Donated Inventory

Posted by & filed under Accounting Principles, Advanced Accounting, All Articles, Auditing, Financial Accounting, Financial Reporting and Analysis, Financial Statement Analysis, Intermediate Accounting, Video Updates.

Over the next five years, Wal-Mart plans to donate about 1.1 billion pounds of food to food banks and provide $250 million to help them buy refrigerated trucks, improve storage and develop better logistics. The plan to contribute $2 billion in cash and food to the nation’s food banks is considered to be one of… Read more »

Are Things Improving for Sears Holding Corporation?

Posted by & filed under All Articles, Financial Reporting and Analysis, Financial Statement Analysis, Intermediate Accounting.

In the third quarter of 2009, Sears Holding Corporation narrowed its losses from $146 million in the previous quarter to $127 million. Despite this, shares of Sears’ stock have almost doubled during 2009. QUESTIONS: The article mentioned that because of inventory management, the company’s gross margin widened by 0.4 percentage points to 27.2%. What are… Read more »