Case Analysis 10 3 Kansas City Zephyrs

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    Finance Case

    Case 1 Warren E. Buffett, 1995 How is Berkshire Hathaway’s business composition from Exhibit 1 different or similar today? Be specific. Provide an overall statement to describe Berkshire Hathaway’s performance over time compared to the S&P 500. Can you discern a trend in the investment decisions of Mr. Buffett and are his decisions consistent with the principals learned from his mentor Dr. Graham? Based on the types of company’s that BK now owns, have the Acquisition Criteria been

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    Kansas City Zephyrs Baseball Club

    Kansas City Zephyrs Baseball Club, Inc. 2006 Evaluation of the five (5) items of dispute between Professional Baseball Players Association (PBPA) and the Owner-Player Committee (OPC) 1- Roster Depreciation – The OPC is currently depreciating 50% of the purchase price over the period of six years, where the PBPA feels that the depreciation expense should be recognized at the time of the team being sold. So who’s right? I feel that the OPC is right not because they are following industry standard

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    Kansas City Zephyrs Case Study

    Chad Dellworth Case: Kansas City Zephyrs Baseball Club: A Baseball Accounting Dispute ACCT 6350 1. How Should Bill Ahern resolve each of the accounting conflicts between the owners and the players? After meeting with both the owners and the players, Bill concludes that the three main accounting areas of concern between both parties are: * 1) Roster depreciation * 2) Player compensation * 3) Owners’ stadium fees In all of three of these conflicts, I noticed that the

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    Kansas City Zephyrs Baseball Club Inc.

    KANSAS CITY ZEPHYRS BASEBALL CLUB INC. In this case we have a typical issue related with different accounting approaches analyzing expenses generated and paid in different periods. We have the position of the Owner-Player Committee (OPC) representing the owners who obviously want to present low profitability in their financial statements to get a better treatment for taxes and in the other side we have the position of the Professional Baseball Players Association (PBPA), the organization representing

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    1.0 Introduction Armco Inc. is a steel manufacturer that used to be the sixth largest in its industry in US (in 1990). The Kansas City Works within its Midwestern Steel Division was hit by the decline in the business in the US steel industry despite its good performance in the past. Consequently, it downsized and incurred significant losses in most of the 1980s. This entity produces two primary products including grinding media and carbon wire rod, one being recognized in the industry for its durability

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    Kansas City Zephyrs Case

    For the Kansas City Zephyrs, answer and submit these two questions for each item in dispute: Who's correct and why? Roster Depreciation The owners. From 1977 to 2004, sports team owners were allowed to treat 50 percent of the team purchase price as an asset depreciable over no more than 5 years. Deferred portion (20%) of compensation The owners. It is an accrued expense, The Company may owe its own players’ salaries and wages for work performed, but not yet paid. Even though they are to be

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    also become a baseline feature. I have yet to find a competitor to Google Maps that is worth the switch but eventually GPS/Maps/Navigation will be used as a framework for further differentiation such as location based augmented reality. 3. What will be a likely future for PNDs? Their certain (not likely) future is that they will just disappear from the market as they will not be able to compete with convergent devices such as smartphones or in-car navigation systems that

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    Kansas City Notes

    | CARPENTRY & TILE WORKS | Concrete Moulding | Steel Railings | Private Pole | | | | OLD | ADJUSTED | OLD | ADJUSTED | OLD | ADJUSTED | OLD | ADJUSTED | OLD | ADJUSTED | OLD | ADJUSTED | OLD | ADJUSTED | OLD | ADJUSTED | OLD | ADJUSTED | kansas | JANUARY |   | - | 100,000.00 | - | 15,000.00 | - | 13,000.00 | - | 6,974.00 | - | 90,094.00 | - | 60,508.25 | - | 11,444.75 | 23,000.00 | 24,800.00 | - | 1,200.00 | | FEBRUARY |   | - | 100,000.00 | - | 15,000.00 | - | 13,000.00 | - | 6,818.80

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    Kansas City Baseball Case Study

    Kansas City Zephyrs Case Study Chad Dellworth Case: Kansas City Zephyrs Baseball Club: A Baseball Accounting Dispute ACCT 6350 1. How Should Bill Ahern resolve each of the accounting conflicts between the owners and the players? After meeting with both the owners and the players, Bill concludes that the three main accounting areas of concern between both parties are: * 1) Roster depreciation * 2) Player compensation * 3) Owners’ stadium fees In all of three of these conflicts

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    assumption had never been scientifically tested. And so, in 1972, with funding and technical assistance from the Police Foundation, the Kansas City Police launched a comprehensive, scientifically rigorous experiment to test the effects of police patrol on crime. THE EXPERIMENT The experiment began in October 1972 and continued through 1973; it was administered by the Kansas City Police Department and evaluated by the Police Foundation. Patrols were varied within 15 police beats. Routine preventive patrol

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    Kansas City Zephyrs Baseball Club Case

    KANSAS CITY ZEPHYRS BASEBALL CLUB This case illustrates some basic accounting issues in a controversial setting. There are two parties in the case, which are Owner-Player Committee (OPC) – owners’ representative of the 26 major baseball league teams in collective bargaining negotiations and Professional Baseball Association (PBPA) – the player’s union. As we know, the baseball team owners and the players association were engaged in collective bargaining negotiations, so Bill met with Keith

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    Kansa City

    John’s company currently has a 40% share of a 1 million unit market. The current price for his product is $100, but in a direct attempt to gain market share from a competitor, he is considering lowering the price of his company’s product by 10% in an attempt to increase market share to 50%. Marketing expenses and cost per unit will remain at the level of 15% of sales and $70, respectively. 1. Assuming no competitive response and that the price cut resulted in a market share increase to 50%,

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    Kansas City Zephyrs Baseball Club, Inc.

    Kansas City Zephyrs Baseball Club, Inc. This case helps demonstrate how different accounting techniques can come to different results. In this case I believe the owners of the team were not being completely honest in the way they were allocating expenses and therefore indicating losses instead of profits. There are three areas that the players association did not agree with the expenses allocated by the owners of the team. These areas are the Roster depreciation, the player’s compensation and

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    Kansas City Zephrys Baseball Club, Inc. Case Study

    Kansas City Zephrys Baseball Club, Inc. Case Study Issue: The PBPA believes the OPC should share with the baseball players the profits of the major league baseball teams Who is right? & Why? Roster depreciation Regarding roster depreciation, I would agree with the PBPA lawyer, Mr. Hanrahan, that depreciation expense should not be included in the income statement of the team since there are no plans on selling the equipment, only plans of sharing profits with the team players. Besides, experience

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    The transportation patterns are likely to be quite different and the need for parking, taxi service to/from airport. The distance from airport is important. Bus accommodations will play a factor in the strategy without the theme park. Step 3: Casino Operations Traditional operations of casino, such as gambling, restaurants, shopping, and security, etc. Focus more on adult-oriented entertainment (bars, etc.) to give casino an advantage and attract more “walk-in” traffic. Update new versions

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    Kansas City Zephyrs Baseball Club

    KANSAS CITY ZEPHYRS BASEBALL CLUB This case has three fundamental issues 1. Roster depreciation; 2. Player compensation; 3. Transfer pricing of related party operations (stadium costs); 1. Roster Depreciation (I side with the Owners) The owners recognize depreciation as of a value placed on the player roster at the time the baseball club was purchased. They do this for two reasons. 1. It lowers the value of the team and second for tax purposes. This is very legal and is normally used

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    Kansas City Case

    Kansas City Zephyrs Baseball Club, Inc.   Answer and submit these two questions for each item in dispute:  Who's correct and why?  for the Kansas City Zephyrs (6 points). ​ ​In this baseball accounting dispute case I would rule towards the side of the players.  First and foremost, their case on roster depreciation is a good point, because one, this is not done in any other industry when referring to staff or labor, and from a performance standpoint the way you may be able to determine if depreciation

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    Kansas City Zephyrs Case

    Kansas City Zephyrs Case This case is a good example of the “earnings game”. A dispute arose between the baseball team owners and the players association on the true profitability of the baseball business. The case describes 3 main areas for which the accounting is being disputed: * Roster depreciation * Player compensation * Current Roster Salary - Deferred Compensation * Amortization of Signing Bonuses * Non-Roster Guaranteed Roster Expense * Transfer pricing

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    Case Analysis 10-3 Kansas City Zephyrs Baseball Club, Inc.

    profits? How should Bill Ahern resolve the accounting conflict between the owners and players? How much did the Kansas City Zephyrs Baseball Club earn in 1983 and 1984? Facts This case shows that how different accounting methods can lead a company to different positions. That is what Bill Ahern was selected on April 9 to focus on reviewing the finances of the Kansas City Zephyrs Baseball Club, Inc., which was bought on November 1, 1982 by five shareholders for $24 million, because both the representatives

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    Harnischfeger Case

    Case Analysis 10-3 Kansas City Zephyrs Baseball Club, Inc. I.Issues Why does net income not equal cash flows? Why do we need accrual accounting? (Why do not we fire all accountants and just publish summary bank statements) Why do the differences between owners’, players’, GAAP and truth number exist?(Can accounting numbers be neutral representations of what happened? What happens if a retired non-roster player (e.g. Joe Portocararo) returns to the active roster while continuing to earn the same

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    Kansas City Case

    Background This case shows different aspects relating to accounting and how they can create an atmosphere of controversy. The problem arises since the owners of baseball team and the players associations are negotiating the collective agreements, with the result of these negotiations both parts could measure how profitable it can be the business of baseball itself. The case describes five areas in which accounting are in dispute: 1. Roster Depreciation 2. Current Roster Salary 3. Amortization

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    Kansas City Zephyr

    you think is correct about the true profitability of Kansas City Zephyrs – the owners or the players? a. both are correct on different issues and there is one issue that is undecided because the facts are not there 2. What is your recommendation regarding the particular accounting disagreements between the owners and the players? b. see below 3. Looking ahead to the sale of the luxury boxes, how should the Kansas City Zephyrs Baseball Club account for the up front $250,000 cash

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    Case Analysis

    MKT 533 Branding Strategy Cases Dr. Diane Badame Fall 2015 The price of this reader reflects a 20% discount on production costs, due to the early submittal of material by the instructor. Dear Student: Reproduction of copyrighted material, without prior permission of the copyright owner, particularly in an educational setting, is an issue of concern for the academic community. Unfortunately, the impropriety of much unauthorized copying is all too often overlooked by users in an educational

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    Kansas City Zephyrs Baseball Club, Inc. Case Study

    Kansas City Zephyrs Baseball Club, Inc. Case Study Antecedents: the Professional Baseball Players Association (PBPA) and the Owner-Player Committee (OPC) were engaged in a collective bargaining dispute where the PBPA believes they should share in the teams' profits. The OPC maintains, however, that the teams were losing money each year. Both sides had independent meetings with an arbitrator to evaluate and recommend a viable decision ”Who is right?” The case illustrate major areas in which

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    Kansas City Zephyers

    Kansas City Zephyrs There are 5 items of dispute between the owners and the players. These items are : 1. Roster depreciation 2. Current roster salary 3. Amortization of signing bonuses 4. Non-roster guaranteed contract expense 5. Stadium operations The owners claim that they are making losses in the financial years 2004- 2005 whereas players are calming that owners are using accounting tools to hide profits thereby depriving players of their rightful amount in compensation and other

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    Kansas City Zephyrs Assignment

    In the case study of the Kansas City Zephyrs Baseball Club, Inc. Bill Ahern the arbitrator was assigned to resolve the issue on the parties’ agreeing on the true profitability of the major league baseball teams. Both Zephyr’s owners and players disagree on three different areas: a) Roster depreciation, b) Overstated Player Salary Expense which entails current signing bonuses, roster salary, amortization of and non-roster guaranteed contract expense; and c) Related-Party Transactions (Stadium Operations)

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    Kansas City Zephyrs

    KANSAS CITY ZEPHYRS BASEBALL CLUB Amortization of signing bonuses: Owners: They have considered “signing bonus” as an expense in the year they are paid (=$12540) Players: Think that signing bonuses are part of the compensation package and for accounting purpose the bonuses should be spread over the term of the player’s contract (=$7818) Our opinion: Agree with the player’s view that signing bonuses have to be capitalized and amortized over the lives of the contracts. This is because players are

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    Although players’ compensations are not paid immediately in cash it is very likely the team will pay them. If the team does what the players suggest and deffers compensation expenses it would not show accurate expenses and therefore over value itself. 3. Transferg pricing of related party operations: (I side with the players) This is a common accounting practice. Our company actually does this with payroll. We have a staffing agency that operates our nursing homes. We charge for LPN and RN double what

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    Zach Arsenault January 12, 2016 BA 327 Case 10 Summary: David Hannigan began as a line manager at a subsidiary of Emperor Corp., a manufacturer of automobile parts. David quickly moved into management after displaying his skills of maintaining efficiency, leadership, and his friendships with the factory workers. David was caring and empathetic towards his employees and everyone respected him. He made them feel like their contributions mattered and pushed them to work hard. Shooting up

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    Kansas City Zephyrs

    Refer to the Kansas City Zephyrs reading from earlier in the week. For each of the 5 areas in dispute, answer the following: Who is right? Why? 1. Roster Depreciation The players are right. All players believe that depreciation is not required because the players improve their skills through their years of experience. Also, they believe the roster appreciates through the years. The appreciation and depreciation of the player rosters are based on the player’s talent, scouting, and coaching

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    Kansas City Zephyrs

    Katelynn Tax 1/18/16 Kansas City Zephyrs Baseball Club, Inc. 2006 There are five main points of difference between the accounting methods of players and owners. The five main differences appear in roster depreciation, current roster salary, amortization of signing bonuses, non-roster guaranteed contract expense, and stadium operations. The following paragraphs analysis the main points above. Owners take 50% of purchase price of $228 million and depreciate it for 6 years this amounts to $19,000

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    Kansas City Zephyrs Baseball Club

    Kansas City Zephyrs Baseball Club Bill Ahern had to resolve the profitability issues between the owners of the major baseball leagues and the players. The main differences were the following: - Roster depreciation: Per IRS code, 50% of the purchase price ($6M) was designated as the value of the player roaster at that time, and the owners decided to spread it over six years (they did it because they could). Players argue that no depreciation should take place because, they believe that with

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    Kansas City

    Financial Accounting July 2012 Session 3 Kansas City Zephyrs and Inventories Jacob Cohen MIT Sloan School of Management 1 Kansas City Zephyrs – Setting I Kansas City Zephyrs – Setting II What are the owners’ incentives? What are the players’ incentives? Kansas City Zephyrs – Discussion Take-Away slide I Kansas City Zephyrs • A case where financial statements are used to resolve an internal dispute • Distinct from Shrek 2, which focused on the effect of accounting

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    with the actual substance of sales transactions involving equipment and extended warranties. Circuit City matches up almost perfectly with the five criteria in Exhibit 2. They incur the selling costs, they have a service network in place and warranty expenses are forecasted with a great deal of accuracy. Very few customers go above the allocated cost of the service warranty, thus Circuit City does not employ a deductible. After a warranty is purchased, Circuit City’s cost and profit can be expensed

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    Case 10

    internal to the entity, and 3)the entity’s internal controls are more effective rather than less effective. These basics concepts provide the basis for the following hierarchy of audit evidence quality. 1. Auditors’ direct, personal knowledge, obtained through physical observation and auditors’ own mathematical computations, is generally considered the most reliable evidence. 2. Documentary evidence obtained directly from external source is generally considered reliable. 3. Documentary evidence that

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