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McDonald’s is raising the hourly wages for its U.S. company-owned restaurants by an average of 10%.

Questions:

  1. With this new raise at company-owned restaurants, how many workers does McDonald’s purpose to hire?
  2. With respect to the restaurant business, in general, why is McDonald’s doing this?
  3. What other fast-food restaurant, mentioned in the article and video, is also raising wages?
  4. How does this announcement impact McDonald’s franchisees?

Source:

Lucas, A. (2021). McDonald’s raises hourly wages for company-owned restaurants. CNBC.com, May 13 (Retrievable online at nbc.com/2021/05/13/mcdonalds-raises-hourly-wages-for-company-owned-restaurants.html)

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According to the Washington Post, the Colonial Pipeline system fuels a significant amount of the east coast’s gas supply. A recent cyberattack halted the supplier and led to panic purchases and price spikes.

Questions:

  1. Where were the highest rates of service station outages?
  2. Besides being a cyberattack, what were other characteristics of the attack?
  3. How much of the east coast’s gas supply does the Colonial Pipeline supply?
  4. Where is the source of the Colonial Pipeline’s petroleum?

Source:

Schaul, K., T. Meko, and D. Moriarty. (2021) Map of dry gas stations impacted by the cyberattack. The Washington Post, May 13 (Retrievable online at https://www.washingtonpost.com/business/interactive/2021/map-gas-shortages/?itid=sf_business)

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According to the New York Times, new claims for unemployment benefits are inching down and a growing number of Republican governors around the country have announced that they are withdrawing from an array of federal pandemic-related jobless benefits.

Questions:

  1. Based on this withdrawal, how many workers will lose jobless claims and over what period?
  2. What will the programs being abandoned include?
  3. Employers, in what sectors, have complained of having trouble finding workers? 
  4. What states that have announced plans to end pandemic-related unemployment benefits, which are federally funded but administered by states, ahead of the Sept. 6 expiration date ?

Source:

Cohen, W. (2021). Plans to Reduce Jobless Benefits Spreads to 16 States. The New York Times, May 13 (Retrievable online at https://www.nytimes.com/2021/05/13/business/economy/weekly-jobless-claims.html)

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No, it’s not Chips A’Hoy! According to Reuters, U.S. President Joe Biden met with executives from major companies on Monday to discuss the global chip shortage that has severely hurt U.S. automakers and spurred Intel Corp to announce it plans to make chips for car plants at its factories in the next six to nine months.

Questions:

  1. What could the current supply crunch of chips lead to?
  2. How many corporate executives met with the Biden Administration on April 12?
  3. Executives from what tech companies were at the summit?
  4. How much has President Biden pledged to invest in semiconductor manufacturing and research as part of his broader focus on rebuilding U.S. manufacturing?

Source:

Bose, N. and S. Nellis. (2021). As Biden works to fix chips shortage, Intel promises help for hurting automakers. Reuters, April 12 (Retrievable online at https://www.reuters.com/article/us-usa-biden-chips-idUSKBN2BZ118)

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According to the Washington Post, Mary Goddard, a former intern at the Sununu Youth Development Center in New Hampshire, says a supervisor suggested she destroy her notes and lie about a teen’s sexual assault allegation.

Questions:

  1. What did the intern do?
  2. What happened to her supervisor?
  3. What would you have done as an intern?
  4. What questions did the article leave unanswered?

Source:

Ramer, H. (2021). Ex-youth center intern says she was told to destroy notes. The Washington Post, April 2 (Retrievable online at https://www.washingtonpost.com/national/ex-youth-center-intern-says-she-was-told-to-destroy-notes/2021/04/02/6958260a-93a6-11eb-aadc-af78701a30ca_story.html)

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According to the Washington Post, according to a Maryland state audit, procurement regulations where not followed when the Maryland administration bought 500,000 COVID-19 tests from a South Korean company last year and the first batch of tests that later had to be replaced for an additional $2.5 million was not authorized by the U.S. Food and Drug Administration (FDA).

Questions:

  1. What critical state regulation provisions were not followed, according to the audit?
  2. Given that the pandemic was a crisis situation, why are lawmakers so critical of the circumstances?
  3. Sen. Paul Pinsky, a Democrat who has questioned the procurement, is quoted as saying, ” That we spent $464,000 so he can get a photo op at the airport is unbelievable .” What is he referring to?
  4. What type of audit is this?

Source:

Witte, B. (2021). Maryland audit faults procurement of 500K virus tests. The Washington Post, April 2 (Retrievable online at https://www.washingtonpost.com/health/maryland-audit-faults-procurement-of-500k-virus-tests/2021/04/02/7b6e6002-9400-11eb-aadc-af78701a30ca_story.html)

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According to the New York Times, Greensill Capital promised a win-win for buyers and sellers, until it all fell apart, igniting concerns about opaque accounting practices.

Questions:

  1. How much was Greensill valued at less than 2 years ago?
  2. Explain how Greensill’s problems extend to the U.S.
  3. Explain Mr. Greensill’s position in the firm as the founder of the supply chain finance company.
  4. What does the FASB plan to do about supply chain finance disclosures and when?

Source:

Nelson, E. , J. Ewing, and L. Alderman. (2021). The Swift Collapse of a Company Built on Debt. The New York Times, March 28 (Retrievable online at https://www.nytimes.com/2021/03/28/business/greensill-capital-collapse.html)

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According to the Washington Post, Mooky Greidinger, the chief executive of Cineworld, believes that really bright days are ahead of the movie theater industry.

Questions

  1. What is the theatrical window and how does it impact the U.S. movie theater industry?
  2. What is delaying the quick comeback of movie theaters in Europe?
  3. How is Cineworld and Regal propping up its cash flow position?

Source:

Zeitchik, S. (2021). The head of Regal Cinemas believes movie theaters are on the verge of a major comeback. The Washington Post, March 27 (Retrievable online at https://www.washingtonpost.com/business/2021/03/27/theaters-recovery-regal-mooky/)

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According to the Washington Post, the CEO for a sort of “Uber for private investigators” called Trustify was sentenced to 97 months this week for fraud.

Questions:

  1. What is the CEO’s name and age?
  2. Did the company make a profit? Explain.
  3. Originally the CEO was sentenced for 9 years. Why was his sentence shortened?
  4. How much money was raised by Trustify’s 250 investors and what happened to it?

Source:

Barakat, M. Tech company founder gets 8 years in prison for stock fraud. The Washington Post, March 26 (Retrievable online at https://www.washingtonpost.com/business/tech-company-founder-gets-8-years-in-prison-for-stock-fraud/2021/03/26/9c879012-8e6d-11eb-a33e-da28941cb9ac_story.html).

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

According to the New York Times, executives at Volkswagen made a commitment to electric vehicles that now is paying off after the diesel scandal five years ago.

Questions:

  1. According to the article, what is the ID.4 and when will it be available to customers?
  2. Why did the article say that Volkswagen’s entrance into the electric car market is well-timed?
  3. What did the article say about Volkswagen and software?
  4. What is the Modular Electrification Toolbox? Explain Volkswagen’s commitment to this platform.
  5. Based on the article, do you think that Volkswagen would be a good investment? Why or why not?

Source:

Ewing, J. (2021). How Volkswagen’s Sins Fueled Its Redemption. The New York Times, March 19 (Retrievable online at https://www.nytimes.com/2021/03/19/business/volkswagen-electric-cars-share-price.html)