The next year, the Hartford Dark Blues moved to nearby Brooklyn then an independent city and played the season as the Hartfords before it dissolved. The Rams arrived from Cleveland in and played in the L. Louis after the season; they would return to L. The Chargers were originally based in Los Angeles, playing there for the AFL's first season in before moving to San Diegowhere they would play until returning to L.
Essay - Paper Example Case Analysis: Essay Why do we need accrual accounting? Can accounting numbers be neutral representations of what happened?
What happens if a retired non-roster player e. Joe Portocararo returns to the active roster while continuing to earn the same money promised him in his guaranteed contract? Of what importance are the periodic net income numbers if the clubs can always be sold for huge profits?
How should Bill Ahern resolve the accounting conflict between the owners and players? Facts This case shows that how different accounting methods can lead a company to different positions. So Bill Ahern was reviewing their finances on April 17, He had to make a difficult judgement in next two days.
He spent Tuesday reviewing the history of major league baseball and the relationship between the various entities. We will write a custom essay sample on Case Analysis: The problem that was needed to be resolved was weather the major baseball league was profitable or not. Because there was a rumor about the owners were hiding profits with some accounting tricks.
Major league is consisted of 26 baseball teams. For the highest-paid players, the team agreed to defer their salaries for 10 years.
Therefore, it helped them to save taxes and income. The other issue was that the retired players. They were not on the current roster however they were being paid according to the contract. Owners decided to expense the whole amount in because they were not active players and not serving to bring in their current revenues.
This value was capitalized and depreciated over six years. Besides all these, the stadium rents were set to understate the profits of the club and to move some profits to the stadium corporation. The rest of their accounting is very straightforward.
Most of their revenues and expenses resulted from a cash inflow o outflow.
Why does net income not equal cash flows? Cash flow measures cash in and cash out, while net income includes several non-cash variables. It is why they do not equal to each other because there are expenses like depreciation and amortization that are not cash expenses.
So, it is obvious that two of them will not be equal. Why do we need accrual accounting? Why do not we fire all accountants and just publish summary bank statements Accountants help to ensure that firms are run efficiently, public records kept accurately, and taxes paid properly and on time by the rules of Generally Accepted Accounting Principles GAAP.
We need accountants because they are trained to handle tough financial situations. They know what investments are wise, what we can afford, and how we can increase our wealth.
The differences between the owners, players, exist because they are both calculate the in various ways at a time under the rules by GAAP.Kansas City Zephyrs Case Words | 3 Pages.
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. Kansas City Zephyrs Baseball Club, Inc.
3 the owners.) The current owner was a corporation with five major shareholders, which bought the. Kansas City Zephyrs Baseball Club, Inc.
MENU. Kansas City Zephyrs Baseball Club, Inc. case study. the Kansas City Zephyrs, is making or losing money. He has to settle a number of.
Kansas City Zephyrs Baseball Club Inc Case Study Solution & Analysis In most courses studied at Harvard Business schools, students are provided with a case study. Major HBR cases concerns on a whole industry, a whole organization or some part of organization; profitable or non .
More Essay Examples on Major League Baseball Rubric. On following day, Wednesday, he met with the twi Zephyrs owners’ representatives, and On the following Monday, Bill Ahern met with the representatives from Professional Baseball Players Association and their lawyer.
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.