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A self-contained explanation and simple practice examples to introduce students to the concepts of compound interest, present value loans, bonds, and leases. Necessary present value tables are included. The study questions provide simple exercises to enhance student learning.

WPP Group acquired J. Walter Thompson and Ogilvy & Mather, paying high premiums in relation to earnings. In each acquisition the goodwill acquired was immediately charged off against owners' equity. Then, WPP Group established a value for the brand names of the two companies. The value totaled $350 million. The case describes the brand valuation process, the differences between U.K. and U.S. accounting methods, and motivation for the transaction.

Spreadsheet Supplement for case 192038.

Excerpts from annual reports of Blount, Inc., Penn Central Corp., and Quaker Oats. Shows changes in inventory valuation from FIFO to LIFO and LIFO to FIFO. Intended to promote a discussion of assumed cost flows through inventory accounts, accounting method changes, the role of auditors, and financial reporting strategy.

Spreadsheet Supplement for case 192046

Circuit City sells consumer electronic equipment, appliances, and extended service and warranty contracts which supplement those provided by equipment manufacturers. Equipment is sold at low margins, while warranties carry very high margins. A question has been raised about the proper method for recognizing revenues on the warranty portion of the combined sale. Deferring revenue will cut profit reported at the time of sales but may better match costs of warranty service.

Spreadsheet Supplement for case 191084

Two whimsical situations are described to provide illustrations of situations where income taxes paid differ from the income tax expense that might be included in financial reports. In addition to illustrating that financial reported income may differ from taxable income, the case contains data, to allow students to discover the reasons for and nature of a deferred tax account.

Spreadsheet Supplement for case 191071.

Deals with the issue of an entrepreneur in a very successful company deciding whether to stay through a period of great growth or to sell. What are the entrepreneur's responsibilities to the organization, to his employees, to the public? As subtopics, the issues of marketing versus having a strong product that sells itself, patents and the legal issues involved, manufacturing problems, and a rising business in a sharply declining market.