Posts Tagged: debt

Some Interesting and Difficult Issues Surround the RiteAid Bankruptcy!

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Ethical Dilemma, Financial Accounting, Financial Statement Analysis, Income Taxes, Intermediate Accounting, Managerial Accounting, Uncategorized, Video Updates.

According to the New York Times, RiteAid, one of the country’s largest pharmacy chains, faces more than a thousand lawsuits that say it filled illegal prescriptions for painkillers. Questions: Source: Holman, J. and L. Hirsch. (2023). Rite Aid, Facing Slumping Sales and Opioid Suits, Files for Bankruptcy. The New York Times, Oct. 16 (Retrievable online… Read more »

Mega Worries for the U.S. Post Office

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Behavioral and Social Issues Related to Accounting, Cost Accounting, Ethical Dilemma, Financial Accounting, Financial Reporting and Analysis, Financial Statement Analysis, Intermediate Accounting, Managerial Accounting, Uncategorized.

According to Bloomberg News, about $24.8 billion of US office buildings were in distress at the end of the second quarter, resulting in a higher amount of real estate worries than the leading commercial real estate laggards — hotels and retail properties. Questions: Source: Gittelsohn, J. (2023). Distressed US Offices Jump to $24.8 Billion, More… Read more »

Look at Carvana Stock Surge!

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Behavioral and Social Issues Related to Accounting, Cost Accounting, Financial Accounting, Intermediate Accounting, Managerial Accounting, Uncategorized.

According to theStreet.com, Carvana stock surged as much as 33% today! But why? Questions: 1. What do some traders speculate that the change is due to? Explain. 2. What happened to Carvana stock in 2022 and why? 3. During the COVID pandemic, how many times did Carvana go into debt? Source: Chang, E. (2023). Carvana… Read more »

Debt backed by Frequent Flyer Programs

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Financial Accounting, Intermediate Accounting, Managerial Accounting, Uncategorized.

According to CNBC, American Airlines is planning to issue $5 billion in bonds and seek a $2.5 billion loan backed by its frequent flyer program to pay back some of its debt used to help survive during the COVID crisis. Questions: How do airlines make money from their frequent flyer programs? What is the loan… Read more »

A Place Where Electricity Costs More than your Mortgage Payment

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Behavioral and Social Issues Related to Accounting, Cost Accounting, Financial Accounting, Intermediate Accounting, Managerial Accounting, Uncategorized.

In Itta Bena, Mississippi, it is not uncommon to receive an electricity bill that is more than you pay for a monthly mortgage. Questions: When residents complained about the high cost of electricity, what did they find out? What type of structural changes are contributing to the high utilities prices in this small town? What… Read more »

COVID-19 Leads to Borrowing Binge

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Financial Accounting, Income Taxes, Intermediate Accounting, Managerial Accounting, Uncategorized.

According to the New York Times, during the pandemic,along with the sharpest economic downturn in history, the solution by most companies has been to take on more debt. Questions: Why does this borrowing binge turn conventional wisdom on its head? Does the article make it sound like there will be many defaults to the Fed… Read more »

What a Sad Day: Say It Ain’t So!

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Financial Accounting, Intermediate Accounting, Managerial Accounting, Uncategorized, Video Updates.

According to the Dayton Daily News, the parent company of Chuck E. Cheese has filed for Chapter 11 reorganization bankruptcy “in order to overcome the financial strain resulting from prolonged COVID-19 related venue closures” and to restore the kids-entertainment-and-pizza chain to a position of long-term success, according to a release from CEC Entertainment, Inc. All across… Read more »

Another IPO in Albertson’s future?

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Financial Accounting, Financial Reporting and Analysis, Intermediate Accounting, Managerial Accounting, Uncategorized.

After failing multiple times to go public, Albertsons’ grocery chain is launching an IPO valued at around $19 billion. Questions: When did Albertsons previously try to go public? Who is Albertsons’ private equity investor and how long have they been invested in Albertsons? How much is Albertsons’ net debt, excluding leases? Why didn’t Albertsons’ merger… Read more »

A Deep Freeze for GE Pensions

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Financial Accounting, Financial Reporting and Analysis, Intermediate Accounting, Managerial Accounting, Uncategorized, Video Updates.

According to the WSJ, General Electric Co. said it was freezing its pension plan for about 20,000 U.S. workers and offering pension buyouts to 100,000 former employees, as the conglomerate joins the ranks of U.S. companies phasing out a guaranteed retirement. Questions: Who is the CEO? The video said the CEO has been aggressive. What has he… Read more »

Loan Forgiveness at Morehouse College

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Financial Accounting, Income Taxes, Intermediate Accounting, Managerial Accounting, Uncategorized, Video Updates.

Billionaire Robert F. Smith surprises 2019 Morehouse graduates with a pledge by his family to eliminate the class of 400 students’ debt with a grant. Questions: White students pay down their debt by 10 percent a year compared to what percent by black students? How many generations have Mr. Smith’s family been in this country?… Read more »