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

According to the New York Times, the man, James Daunt, who will soon try to revive Barnes & Noble once spent weeks arguing with a bookstore shelving designer that the correct angle of tilt for a shelf is three degrees, because books catch more light and attention on shelves below eye level.

Questions:

  1. Which bookstore chain does Mr. Daunt operate and where is it?
  2. What is the percent margin on sales for Daunt’s chain?
  3. How many of Barnes and Noble’s stores have closed since 1997 and how many are left operating currently?
  4. Discuss the market share of Amazon, Barnes and Noble, and Daunt’s bookstore chain. How do they compare?

Source:

Segal, D. (2019). Can Britain’s Top Bookseller Save Barnes & Noble? August 8 (Retrievable online at https://www.nytimes.com/2019/08/08/books/watersones-barnes-and-noble-james-daunt.html)

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 Washington Post, there is discussion among senior White House officials to advance a temporary payroll tax cut as a way to limit the economic slowdown forecast by economists.

Questions:

  1. When and how much was the last payroll tax cut and why was it made?
  2. Payroll tax cuts add dramatically to the deficit and what else is affected?
  3. Some administration officials have felt that planning for an economic downturn might fuel what other types of problems?

Source:

Paletta, D. (2019). White House officials eyeing payroll tax cut in effort to reverse weakening economy. The Washington Post, Aug. 19 (Retrievable online at https://beta.washingtonpost.com/business/economy/white-house-officials-eyeing-payroll-tax-cut-in-effort-to-reverse-weakening-economy/2019/08/19/4cab28ec-c2bd-11e9-b72f-b31dfaa77212_story.html)

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 Paul Whitfield, economists differ on how much blame the Smoot-Hawley tariffs deserve for the Great Depression. They also disagree on how much credit President Franklin Roosevelt deserves for the Reciprocal Tariff Act, which put the U.S. on a path to lower  tariffs. But the market knows.

Questions:

  1. According to the article, what similarities exist with today’s circumstances?
  2. According to the article, what differences exist with today’s circumstances?
  3. What trouble did the stock market face on August 5, 2019? (i.e., how many points lost?)

Source:

Whitfield, P. (2019) Stock Market Reaction To Tariffs: Wall Street Has Seen This Before; The End Is Not Good. Investor’s Business Daily, August 1 (Retrievable online at https://www.investors.com/how-to-invest/investors-corner/trump-tariffs-history-dow-jones/)

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

HSBC announced that CEO, John Flint, was leaving the bank after only 18 months in the role. 

Questions:

  1. What issues is Europe’s biggest bank grappling with currently?
  2. What specific strategic reason does the Board give for his departure?
  3.  What is the revenue risk that HSBC faces?

Source:

Reuters Staff. (2019). HSBC CEO John Flint leaves abruptly after only 18 months in role. Economic Times, August 5 (Retrievable online at https://economictimes.indiatimes.com/news/international/business/hsbc-ceo-john-flint-leaves-abruptly-after-only-18-months-in-role/articleshow/70530466.cms)  

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.

Lowe’s announced that it will be laying off thousands of workers, including maintenance workers, service workers, and furniture and grill assemblers.

Questions:

  1. How does Lowe’s plan to fill this void?
  2. What will it offer the laid-off workers?
  3. What is the health of Lowe’s stores overall?

Source:

Dockery, W. (2019). Lowe’s Layoffs 2019: Why The Hardware Retail Giant Will Cut Thousands Of Workers. International Business Times, August 4 (Retrievable online at https://www.ibtimes.com/lowes-layoffs-2019-why-hardware-retail-giant-will-cut-thousands-workers-2810686)

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

According to Business Insider, when in 2018, CVS Health acquired Aetna, combining a chain of nearly 10,000 pharmacies dispensing prescriptions and selling snacks and soda with one of the biggest US health insurers, the company also took greater steps to promote healthier options.

Questions:

  1. What was CVS’s stand regarding the sale of cigarettes?
  2. Where does CVS Health Chief Marketing Officer, Norman de Greve, think that CVS growth will come from?
  3. As CVS starts to focus its physical presence more on health, how important do you believe its focus on healthy choices will be for the company’s stock price?  

Source:

Ramsey, L. (2019). CVS wants to change where millions of Americans go when they get sick. Here’s how it plans to get them in the door in the first place. Business Insider, July 29 (Retrievable online at https://www.businessinsider.com/cvs-health-chief-marketing-officer-degreve-on-future-of-pharmacy-2019-7)

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

According to Business Insider, the Securities and Exchange Commission is stepping up scrutiny of mutual fund investments in private companies, according to people with knowledge of the agency’s interest.

Questions:

  1. What has been the problem with mutual funds investing in companies like Airbnb or WeWork?
  2. Which case is notorious for spiking the SEC’s interest in the issue of illiquid securities?
  3. The SEC enacted rules earlier this year regarding mutual funds. Briefly summarize the issues that these focused on.

Source:

Saacks, B. and D. Campbell (2019). The SEC is scrutinizing whether mutual funds need to shed more light on stakes in unicorns like WeWork and Airbnb — and it could mean more protections for mom-and-pop investors. Business Insider, July 29 (Retrievable online at https://www.businessinsider.com/sec-steps-up-scrutiny-of-private-stakes-held-by-funds-2019-7)

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

According to the Washington Post, nearly half of all Americans were affected by the 2017 Equifax data breach, where hackers stole personal data for more than 147 million people: credit card numbers, Social Security numbers and other identifying information. Now, as part of a settlement agreement with the Federal Trade Commission, the people whose data was stolen can get some compensation: 10 years of free credit monitoring, or maybe $125, depending on how badly you were affected.

Questions:

  1. According to the article, why is there a good chance that you won’t actually get the full $125 that Equifax and the FTC are talking about?
  2. If you have spent or lost money as a result of the hack (legal or accounting fees, or the money you lost because someone stole your identity and charged a large amount of money on accounts in your name, what can you do?
  3. What is the only option in which you keep your right to sue Equifax in the future and what is the deadline?
  4. How should Equifax record the settlement in their accounting records?

Source:

Brice-Saddler, M. (2019). An Equifax hack settlement promises a $125 payout. The truth is more complicated. The Washington Post, July 26 (Retrievable online at https://www.washingtonpost.com/business/2019/07/27/equifax-settlement-guide-how-get-money-what-you-need-know/?utm_term=.5be02ff449f1)

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.

According to the Washington Post, now is a good time to book fall getaways because rates are dropping.

Questions:

  1. By month, what drops are expected in airline rates?
  2. What is the peak travel month?
  3. When are the most expensive times for travel?
  4. Do sales that airlines advertise the best rates? Discuss.

Source:

Sampson, H. (2019). Airfare is dropping — and you can enjoy the trend through September. The Washington Post, July 15 (Retrievable online at https://www.washingtonpost.com/travel/2019/07/15/airfare-is-dropping-you-can-enjoy-trend-through-september/?utm_term=.210b875902dc)

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

Goldman Sachs has a plan to combine five investing teams into a single alternatives unit. This plan has been doubted internally and has led to interesting drama within the firm.

Questions:

  1. Who is Goldman’s CEO who announced this plan?
  2. Why is this move important to outside investors?
  3. Why is the debate centering around Goldman’s two most profitable units?
  4. What are these units?
  5. Explain the sentence in the article: ” The CEO wants to take advantage of the growth in alternatives, but to do so means moving away from the limitations of Goldman’s balance sheet.” 

Source:

Campbell, R. (2019). Goldman Sachs execs are jockeying for power in the firm’s big new private investing unit — and the stakes couldn’t be higher. Business Insider, July 15 (Retrievable online at https://www.businessinsider.com/theres-drama-with-goldman-sachs-private-investing-unit-plan-2019-7)