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

“Thor: Ragnarok” rocked the box office for the second weekend in a row.

Questions:

1. What was the movie’s competition?
2. Who stars in the movie?
3. How much has the box-office success taken in since opening?
4. Research this one: How does accounting in the movie industry vary from other industries?

Source:
Staff. (2017) “Thor” smashes competition again at weekend box office. Reuters.com, Nov. 12 (Retrievable online at http://www.reuters.com/video/2017/11/12/thor-smashes-competition-again-at-weeken?videoId=372958477&videoChannel=2602&channelName=Most+Popular)

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To make deeper inroads into online fashion, Wal-Mart Stores Inc said it will soon offer Hudson’s Bay Co. owned department store chain Lord & Taylor dedicated space on its website.

Questions:
1. When will the new fashions be offered?
2. What are the financial terms of the deal?
3. Despite its large presence, who is Wal-Mart failing to attract with its online offerings?
4. What does Walmart see as its virtual future?

Source:

Bose, N. (2017). Wal-Mart partners with Lord & Taylor to expand online fashion presence. Reuters.com, Nov. 13 (Retrievable online at http://www.reuters.com/article/us-walmart-lord-taylor/wal-mart-partners-with-lord-taylor-to-expand-online-fashion-presence-idUSKBN1DD2Q7)

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According to Reuters, CVS Health Corp., a U.S. pharmacy chain, made an offer to acquire No. 3 U.S. health insurer, Aetna Inc. for more than $200 per share, or over $66 billion.

Questions:
1. After the news, what happened to Aetna stock price?
2. Would this be a good “marriage,” in your opinion?
3. How could this be used to apply pressure against a proposed move by Amazon to go into the pharmacy business?
4. Why are times so uncertain for the healthcare industry right now?

Source:
O’Donnell, C. and Greg Roumeliotis. CVS makes more than $66 billion bid for Aetna: sources. Reuters, Oct. 26 (Retrievable at http://www.reuters.com/article/us-aetna-m-a-cvs-health/cvs-makes-more-than-66-billion-bid-for-aetna-sources-idUSKBN1CV3CM)

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Broadcom LTD made an unsolicited $103 billion bid for Qualcomm to set the stage for a major takeover of the chipmaker and dominate the market of semiconductors used in mobile phones.

Questions:
1. What is Qualcomm’s take on this bid?
2. Would this deal cause a monopoly?
3. What are the terms of the deal?
4. What is the likely moves of both companies’ stock prices?
5. Where will the likely approval problem happen?
6. Who is Hock Tan?
7. Why is Qualcomm vulnerable for a takeover at this time?

Source:
Mukherjee, S. and Greg Roumeliotis. (2017) Broadcom offers $103 billion for Qualcomm, sets up takeover battle. Reuters, Nov. 6 (Retrievable at http://www.reuters.com/article/us-qualcomm-m-a-broadcom/broadcom-offers-103-billion-for-qualcomm-sets-up-takeover-battle-idUSKBN1D61EO)

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In 2008, a thriving company named Science Care Inc developed a 55-page national expansion plan. Read what happened!

Questions:
1. What was the company’s goal?
2. What company did Science Care Inc. model?
3. How much did the company earn From 2012 through 2014?
4. If a person donates a whole body when they die, what are the government regulations for companies carving it up?
5. What is the background on Jim Rogers and his company?
6. How much do cadavers sell for?
7. Do you think companies should profit from body donations? Discuss.

Source:
Shiffman, J. and B. Grow. (2017) Special Report: U.S. company makes a fortune selling bodies donated to science. Reuters.com, Oct. 26 (Retrievable online at http://www.reuters.com/article/us-usa-bodies-science-specialreport/special-report-u-s-company-makes-a-fortune-selling-bodies-donated-to-science-idUSKBN1CV1J7)

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According to Axios, Sears and Whirlpool are severing ties after a 101-year relationship. You will no longer be able to buy Whirlpool appliances at Sears, but Whirlpool will still make Kenmore appliances for the firm.

Questions:
1. Why does this matter?
2. What other relationships has Sears changed in the recent past?
3. What did Sears tell its employees about severing the Whirlpool relationship?
4. According to the article, why are all these shifts happening at Sears?

Source:
LeVine, S. (2017) Struggling Sears cuts ties with another old friend. Axios.com, Oct. 24 (Retrievable online at https://www.axios.com/struggling-sears-cuts-ties-with-another-old-friend-2500748627.html?utm_medium=linkshare&utm_campaign=organic)

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According to Axios and a new report out by Harvard, a growing number of U.S. employers are requiring bachelor’s degrees for jobs that have long been performed by workers without them. This is contributing to a rise in income inequality through “degree inflation.”

Questions:
1. Why does this matter?
2. What are the costs of the shifts and who is hurt by degree inflation?
3. What can government do about this?
4. How will it affect people you know?

Source:
Matthews, C. (2017). “Degree inflation” may be pushing workers out of the middle class. Axios, Oct. 25 (Retrievable online at https://www.axios.com/degree-inflation-trend-american-jobs-2500840612.html?utm_medium=linkshare&utm_campaign=organic)

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According to Reuters, Amazon, the world’s largest online retailer, announced the premier of Amazon Key – a lock and camera system that users control remotely to let delivery associates slip goods into their houses.

Questions:
1. What will be the cost?
2. How do you maintain privacy?
3. What is Wal-Mart testing that is a similar offering?
4. Would you buy-in to this service? Why or why not?

Source:
Dastin, J. (2017) Amazon to sell smart locks so it can slip packages into your home. Reuters, Oct. 25 (Retrievable online at https://www.reuters.com/article/us-amazon-com-key/amazon-to-sell-smart-locks-so-it-can-slip-packages-into-your-home-idUSKBN1CU1G2)

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The call has gone out for the U.S. Securities and Exchange Commission to investigate possible insider trading of shares of student loan company Navient Corporation.

Questions:
1. Who has asked the SEC to do this?
2. Why do the Senators suspect this?
3. What are the implications of the details surrounding the trades?

Source:
Nasiripour, S. (2017). Elizabeth Warren Calls for SEC Insider Probe of Navient Trades. Bloomberg.com, Oct. 23 (Retrievable online at https://www.bloomberg.com/news/articles/2017-10-23/elizabeth-warren-joins-call-for-sec-probe-of-navient-trades)

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General Electric Co.’s stock has tumbled the most it has seen in six years. This is due to a deteriorating outlook stoked by fears that the company will cut its dividend for only the second time since the Great Depression.

Questions:
1.What is causing the drop, according to Jeff Windau, an analyst at Edward Jones?
2. On October 20, what did GE cut its forecasted earnings from and to? What had analysts estimated prior to this announcement?
3. What is in weak demand for some of GE’s signature businesses?

Source:
Black, T. and B. Case. (2017) GE Plunges the Most in Six Years. Bloomberg.com (Retrievable online at https://www.bloomberg.com/news/articles/2017-10-23/ge-sinks-most-in-six-years-as-wall-street-sees-dividend-in-peril)