Complaining of low profit margins that generally accompany inexpensive menu items, most fast-food restaurants try to keep wages down. However, some fast food chains are seeing the benefit in paying employees above minimum wage and even above the median hourly wage for fast-food workers nationwide of $8.83, because it allows their workers to opportunities to… Read more »
Posts Categorized: Intermediate Accounting
The Dirty Little Secret of “Cramming!”
On July 1, 2014, the Federal Trade Commission (FTC) accused wireless carrier T-Mobile of adding bogus charges to customers’ accounts without their consent, in U.S. District Court. Questions: 1. How long did T-Mobile use the practice of “cramming” on customer mobile phone bills and what is the estimated amount of the total fraudulent charges? 2…. Read more »
The worth of an employee?
CEOs talk about what valuable assets employees are, but these assets do not show up on the company’s balance sheet. Why? Because the company does not and cannot own its employees, even though it may seem so at times. However, employers can put a value on your life through company-owned life insurance (COLI). Questions: 1…. Read more »
Barclay’s Dark Pool
Despite Barclay’s private and public assurances to investors in its pool that they were continually shielded from high-speed trading, the bank is being sued for actively attracting high-speed traders to its venue, as well as bolstering high-speed trader strategies with privileged information about the pool. Questions: 1. Summarize why the article essentially called this a… Read more »
The Untouchable Alaska Bypass
Under a federal program exclusive to Alaska, the Postal Service is responsible for shipping more than 100 million pounds a year of apples, frozen meat, dog food, diapers and countless other consumer items to off-road villages in the sparsely populated outposts known as the bush. Over three decades acting as freight forwarder, the agency has… Read more »
How much do you have to make to get a checking account?
Zikomo Fields makes more than $100,000 a year in his job as a software engineer in Kansas City. However, he cannot get a bank account because of a little-known database that tracks financial transgressions, known as ChexSystems. Financial institutions who subscribe to this service view it as fraud prevention. However, New York Attorney General Eric… Read more »
Mmmmmmmmm! But watch out for the Mac & Cheese!
Some are calling this the new “Cheeseapocalypse” as Kraft Foods Group recalls 260 cases of Velveeta sold to Walmart because the batches lack enough preservatives and could “spoil prematurely and/or lead to food borne illness.” Questions: 1. What states are affected by the recall? 2. What ingredient is causing the recall? 3. What types of… Read more »
When is a Raise Too Small?
Deeb Salem, a former Goldman Sachs trader, says that after making the company in excess of $7 billion in 2010, his $8.25 million raise was not enough compensation. Questions: 1. What percentage drop was Salem’s 2010 raise as compared to his 2009 raise? What percentage drop was Salem’s 2011 raise as compared to his 2010… Read more »
Separation of Power
Netflix shareholders will vote on at the company’s annual meeting on Monday is a proposal by two public pension funds to separate the roles of chairman and chief executive. Both are held by Reed Hastings, Netflix’s co-founder. Questions: 1. Who are the backers of this corporate governance issue and why do you think they are… Read more »
Something doesn’t add up
As more companies become aware of the tax opportunity that Bermuda, the Cayman Islands and the British Virgin Islands offer, more are taking advantage of it. According to the I.R.S. in 2004, companies with foreign income said 8 percent of that income came from those remarkable islands. But in 2010, the figure was 11 percent…. Read more »
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