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

The Feds claim that the nation’s largest student loan servicer gave rushed and costly advice.

Questions:
1. What is the amount or size of the U.S. government’s student loan program in dollars?
2. What is Navient?
3. How would you describe the structure of Student loan servicing?
4. What are some of the claims about Navient and the legal challenges?

Source:
Nasiripour, S. and J. Lorin. (2017). Behind the Dizzying Student Loan Game Navient Allegedly Played. Bloomberg, Jan. 26 (Retrievable online at https://www.bloomberg.com/news/articles/2017-01-26/behind-the-dizzying-student-loan-game-navient-allegedly-played)

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At Starbucks, customers are now able to order and pay for coffee via their phones, so many of them now head directly to the part of the cafe where beverages are handed out. Various snags contributed to company’s lower-than-expected sales and the coffee giant is working to correct problem, according to its Chief Operating Officer.

Questions:

1. Describe the congestion that Chief Operating Officer Kevin Johnson is explaining about Starbucks.
2. How much of Starbucks sales are generated via Phone app?
3. Describe Starbuck’s current financial position (in your own words).

Source:

Patton, L. (2017). Starbucks Mobile Orders Bring Traffic Jams to Pickup Counter. Bloomberg, Jan.27 (Retrievable online at https://www.bloomberg.com/news/articles/2017-01-26/starbucks-mobile-ordering-brings-traffic-jams-to-pickup-counter).

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

Donald Trump met with Japanese billionaire Masayoshi Son and soon news of 30,000 to 50,000 new U.S. manufacturing jobs were part of Trump’s boasts. Now Taiwanese manufacturer, Foxconn, appears to be reneging on claims that it is preparing to build a $7 billion factory in the U.S.

Questions:
1. How did Foxconn’s chief executive officer, Terry Gou, explain its plans for U.S. facilities?
2. Why have the negotiations with the Taiwanese electronics manufacturer become more complicated?
3. Has Gou mentioned building a facility in the U.S. prior to the Trump promise and if so, what happened?

Source:
Thielman, S. (2017). Foxconn backpedals on US factory plans: ‘It is not a promise. It is a wish’

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

All-day breakfast is beginning to lose its novelty for McDonald’s Corp.

Questions:
1. What happened to last quarter’s domestic same-store sales?
2. In your opinion, what will be McDonald’s next big source of growth?
3. Are the profit potentials the same for McDonald’s globally? Explain.

Source:
Giammona, C. (2017). McDonald’s All-Day Breakfast Push No Longer Fueling Growth. Bloomberg, Jan. 23 (Retrievable online at https://www.bloomberg.com/news/articles/2017-01-23/mcdonald-s-profit-beats-estimates-as-turnaround-gathers-steam)

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

Even though Wall Street and the financial press have been harping for decades on the retirement savings crisis, this article provides some additional perspectives.

Questions:
1. According to the Manpower Group, what percentage of millennials plan to work until they die (as their solution to retirement)?
2. Why do so many millennials have such a negative view of retirement?
3. According to Transamerica, what percentage of retirees quit work sooner than expected and what are the reasons for this?
4. What would you advise a friend of yours to do at your age in order to plan for retirement?

Source:
Kadlec, D. (2017). Retirement Planning: Working ‘Til You Die Is a Lousy Financial Plan. CNN.com, Jan. 12 (Retrievable online at http://time.com/money/4631542/working-forever-is-lousy-retirement-plan/)

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Xiaomi, once hailed as an Apple iPhone slayer in China, now admits that they moved too fast to outpace their competitor. The company’s founder, Lei Jun, wrote his employees this week, indicating that the company needs to focus on the future and long-term sustainability.

Questions:
1. Who are the domestic rivals to Xiaomi in the smartphone Chinese market?
2. What were Xiaomi’s unforgettable challenges?
3. What secured Xiaomi’s spot in the Guinness World Record book in 2015?
4. Lei admitted that selling cheap phones online isn’t enough. So what is his focus now, besides sustainability?

Source:
Pham, S. (2017). The ‘Apple of China’ admits it grew too quickly. CNN.com, Jan. 13 (Retrievable online at http://money.cnn.com/2017/01/13/technology/xiaomi-apple-china-smartphone/index.html)

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, Auditing, Cost Accounting, Financial Accounting, Income Taxes, International Accounting, Managerial Accounting.

According to Neil Irwin, our current tax system is infinitely complicated and it gives companies incentives to borrow too much money and move operations to countries with lower tax rates. With the House, Senate and presidency all soon to be in Republican hands and with all agreeing that a major tax bill is a top priority, some kind of change appears likely to happen.

Questions:
1. What type of change does Irwin suggest will happen?
2. What does D.B.C.F.T. stand for?
3. What were the two prime examples that Irwin gave regarding overseas transfers?
4. What are the risks of this model?

Source:
Irwin, N. (2017).The Major Potential Impact of a Corporate Tax Overhaul. The New York Times,Jan. 7 (Retrievable online at http://www.nytimes.com/2017/01/07/upshot/the-major-potential-impact-of-a-corporate-tax-overhaul.html)

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Japan is the country that coined the word “karoshi,” or death by overwork. Now it wants companies to let workers finish early on the last Friday of every month, go out and have some fun.

Questions:
1. What will this government campaign be called and when does it start?
2. How is this move expected to improve private consumption in Japan?
3. How much of annual leave consumption do Japanese workers typically use?

Source:
Ujikane, K. (2016). Japan Wants Its Overworked Citizens to Start Weekends Early. Bloomberg News, Dec. 29 (Retrievable online at https://www.bloomberg.com/news/articles/2016-12-29/japan-wants-its-overworked-citizens-to-start-weekends-early)

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

Amid funding shortages, American colleges are turning to international students, who offer a lifeline to cash-strapped U.S. state schools.

Questions:
1. How many international students were enrolled in U.S. Universities last year?
2. What percent increase have universities seen in the enrollment of international students since the 2005/2006 school year?
3. Discuss what is happening to the financial reliance on tuition for state schools from the 1990s to the present day.

Source:
Yadoo, J. (2016). Foreign Students Offer Lifeline to Cash-Strapped U.S. State Schools. Bloomberg News, Dec. 29 (Retrievable online at https://www.bloomberg.com/news/articles/2016-12-29/foreign-students-offer-lifeline-to-cash-strapped-u-s-state-schools)