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According to the Washington Post, grocery workers across the country say morale is crushingly low as the pandemic wears on with no end in sight.

Questions:

  1. Why do grocery workers feel a renewed sense of expendability?
  2. Why do grocery workers feel like this is a dead end job?
  3. What was different in March and April of this year?
  4. Are groceries required to report Covid-19 cases to local health departments?
  5. What generally happens if a grocery worker tests positive for Covid-19?

Source:

Bhattarai, A. (2020). Grocery workers say morale is at an all-time low: ‘They don’t even treat us like humans anymore’ The Washington Post, August 12 (Retrievable online at https://www.washingtonpost.com/business/2020/08/12/grocery-workers-coronavirus/)

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

According to the New York Times, Delta Airline’s foray into oil refining in 2012 illustrates some of the reasons that the business was in trouble even before the pandemic.

Questions:

  1. What was the bold experiment that Delta Air tried?
  2. What were the flaws in Delta’s strategy?
  3. What is the most immediate concern of the refinery executives?

Source:

Krauss, C. and N. Chokshi. (2020). Delta Air Lines Bought an Oil Refinery. It Didn’t Go as Planned. The New York Times, August 10 (Retrievable online at https://www.nytimes.com/2020/08/10/business/energy-environment/delta-oil-refinery-jet-fuel.html)

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According to the Washington Post, McDonald’s,the fast-food giant claims Steve Easterbrook, whose severance package is said to be worth $42 million, destroyed a paper trail of his “inappropriate personal behavior.”

Questions:

  1. What did Mr. Easterbrook cover up?
  2. Why did the company reopen the firing case back up in July?
  3. How did the company find out about the problems with Mr. Easterbrook?

Source:

Denham, H. (2020). McDonald’s Sues Fired CEO to Recoup Severance. The Washington Post, August 10 (Retrievable online at https://www.washingtonpost.com/business/2020/08/10/mcdonalds-ceo-lawsuit/?hpid=hp_business-1_mcdonalds-sue-1050am-biz%3Ahomepage%2Fstory-ans)

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The Securities and Exchange Commission launched a probe of circumstances surrounding Eastman Kodak (KODK) and a $765 million government loan it received last week to make pharmaceutical ingredients at its U.S. facilities.

Questions:

  1. What happened to Kodak stock between the announcement of its government loan to make pharmaceutical ingredients and the announcement of the SEC probe?
  2. Which U.S. Senator indicated that Kodak may have an insider trading problem?
  3. When were some of the stock-options in question actually granted to Kodak executives?  

Source:

Ghosh, P. (2020). SEC Probing Loan Disclosure, Unusual Stock Trading Activity At Eastman Kodak. International Business Times, August 4 (Retrievable online at https://www.ibtimes.com/sec-probing-loan-disclosure-unusual-stock-trading-activity-eastman-kodak-3022399)

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According to the Washington Post, some companies are adopting an innovative approach to accounting for the impact the coronavirus pandemic has had on their earnings: they’re leaving it out.

Questions:

  1.  What is Ebitda and why is it so important?
  2. How does Ebitdac work?
  3. Who’s using it?
  4. What is your opinion of this practice?

Source:

Lindell, K. (2020) How Companies Are Accounting for Covid-19. The Washington Post, July 15 (Retrievable online at https://www.washingtonpost.com/business/how-companies-are-accountingfor-covid-19/2020/07/10/d0f5aa86-c28b-11ea-8908-68a2b9eae9e0_story.html )

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Despite the sharp decline for oil and gas, Chevron agreed on Monday to buy Noble Energy for roughly $5 billion.

Questions

  1. Why might this be such an important move?
  2. Why did Noble decide to sell?
  3. How many North American oil producers have filed for bankruptcy this year?

Source:

Krauss, C. (2020). Chevron Deal for Oil and Gas Fields May Set Off New Wave of Mergers. The New York Times, July 20 (Retrievable online at https://www.nytimes.com/2020/07/20/business/energy-environment/chevron-noble-oil-mergers.html)

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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:

  1. Why does this borrowing binge turn conventional wisdom on its head?
  2. Does the article make it sound like there will be many defaults to the Fed on these loans or fewer near bankruptcies or a little bit of both?
  3. Why are the banks currently earning hefty fees?
  4. What has happened to bond prices?
  5. What are the zombie companies and what are they doing in the market?

Source:

Phillips, M. (2020). Businesses Are Supposed to Cut Debt in a Downturn. Why Not Now? The New York Times, July 20 (Retrievable online at https://www.nytimes.com/2020/07/20/business/corporate-debt-federal-reserve.html )

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 famed discount department store, Tati in Paris, is closing its doors.

Questions:

  1. Why is the store so famous?
  2. Why is the store closing?
  3. Who is the owner of Tati?
  4. What store in the U.S. would you compare Tati to, based on the article description?

Source:

Nossiter, A. (2020). A Place Where Everybody Can Shop’ Is Closing Its Doors. The New York Times, July 20 (Retrievable online at https://www.nytimes.com/2020/07/20/world/europe/france-paris-tati-coronavirus.html )