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Simko, Paul J.

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Assessing Earnings Quality: Nuware, Inc.

Associate Jack Hereford must analyze the earnings quality of Nuware Imports. His specific task is to assess the accounting policies of Nuware as aggressive or conservative and then recast the current earnings of the company as if it had employed the accounting policies used by its closest peer. A number of adjustments are required, including those related to inventory, receivables, fixed assets, s ...

BHP Billiton Group: Long-Term Debt (A)

BHP Billiton Group issued two tranches of long-term debt in March 2009. Details and terms of those debt issues are provided. The case can be used to illustrate the accounting for long-term debt and publicly traded corporate bonds. ...

BHP Billiton's $40 Billion Hostile Bid for Potash Corp

BHP Billiton Limited (BHP), the world's largest natural-resources company, launched a $130-per-share bid for Potash Corporation, Inc., (POT) of Saskatchewan, Canada, the world's largest integrated fertilizer and related industrial and feed products company and the largest producer of potash worldwide by capacity. The acquisition was aimed at meeting BHP's corporate strategy of becoming a leading g ...

Chick-fil-A: A Bird of a Different Feather

In 2011, sales at Chick-fil-A (CFA)surpassed $4 billion; however due to ownership's aversion to debt, the pace of expansion was significantly slower than the fast-food-segment average. And the biggest differences between CFA and other fast-food chains were its private, family-controlled ownership structure and its management philosophy. This case explores the relationship between an enterprise's p ...

China Electric Motor Hits the Street (A)

This case is used in Darden's Global Executive MBA core ""Accounting for Managers"" course. In January 2011, an independent registered investment advisor has noticed that in the previous year 300 Chinese-owned companies had launched initial public offerings in the United States. A number of U.S. investors had purchased broad market exposure through exchange-traded funds and mutual funds to capital ...

China Electric Motor Hits the Street (B)

In the A case, an investment advisor has uncovered mixed results about China Electric while reading through various research reports. Although China Electric is an interesting prospect, in the B case, the investment advisor has some doubts. Could China Electric continue at its high rate of profitability and growth? What was management's plan in regard to investing cash in the business? He consider ...

Consolidated-Tomoka?A Real Estate Holding Company

A real estate holding company with a diverse array of real estate operations serves to introduce a number of accounting and finance topics. The company owns over 11,000 acres of raw land purchased many years past, thus the use of historical cost accounting has left significant asset value off the books. The company is debt free, but a shift in corporate strategy and the use of tax-free 1231 like-k ...

Double G Western Wear

Frustrated by not being able to find a pair of red cowboy boots in her size, a Florida woman, who works as a bookkeeper, decides to open her own business with her out-of-work husband. Although the store manages to earn a small profit, early sales returns dampen the couple's enthusiasm. Now they need to plan for the year ahead. Students are given a balance sheet and income statement for 2006, and a ...

Embraer S.A.

Maria Rodriguez has secured an interview for a senior-management position with Embraer S.A. (Embraer), based in S?o Paulo. In preparation, she investigates Embraer's business model and reviews the company's financial statements to make sure she understands each of the important balance sheet and income statement accounts. She feels prepared to discuss the performance of the world's fourth-largest ...

Harman International and KKR (A)

When courted by KKR, Harman International was experiencing robust times. After several months of due diligence performed by KKR and its financial and legal partners, KKR announced that Harman International had agreed to be acquired in a private equity transaction valued at $8 billion. But by the time the documents pertaining to the Harman International/KKR transaction were on the table, the financ ...

Harman International and KKR (B)

This case provides the outcome of the scenario provided in the (A) case, C-2305, as KKR tries to get out of the deal with Harman due to its declining profit margins. At stake for KKR is the $225 termination fee. The drama abruptly ends when KKR agrees to invest in Harman after trying and failing to be able to use a MAC provision and fearing the distraction of a lengthy court battle. Harman then an ...

International Power PLC: Financial Performance in the Global Power Industry

This case illustrates ratio analysis using financial data for a global power company. It is best suited for an introductory discussion of ratio analysis for both the cross-section and time-series. Ten years of standard ratios pertaining to profitability, efficiency, liquidity, solvency, capital structure, and market multiples are provided. The case highlights the correspondence between firm perfor ...
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