Buffett’s New Move

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

Warren Buffett is paying a hefty price for the biggest bet of his career as his Berkshire Hathaway Inc (BRKa.N) has agreed to buy Precision Castparts Corp (PCP.N), valuing the maker of aerospace and other parts at $32.3 billion. Questions: 1. According to the article, Berkshire’s new deal joins a foray of companies within other… Read more »

Hard Times in TeslaLand? A New Type of Company, for Sure!

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

The Silicon Valley automaker is losing more than $4,000 on every Model S electric sedan it sells, using its reckoning of operating losses, and it burned $359 million in cash last quarter in a bull market for luxury vehicles. The company on Wednesday cut its production targets for this year and next. (As an aside:… Read more »

Another Bubble?

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Airbnb’s latest financing round is being led by private equity firm General Atlantic, and includes Hillhouse Capital Group, a Chinese fund manager, and Tiger Global Management, which just led a big $80 million financing for Postmates. The deal is expected to be officially announced today, Monday, June 29. Questions: 1. What is a “private IPO”?… Read more »

When Will They Ever Learn?

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Bank of America (BoA) is in the news again. This time, Bank of America must pay a $30 million fine after a financial regulator found numerous violations related to the accounts of 73,000 military service members. Questions: 1. What actions did the bank take against military service members that were illegal? 2. What steps did… Read more »

The Hidden Costs of Beautiful Nails

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Manicures were once for special occasions only. Now they have become a staple for women across the economic spectrum. With more than 17,000 nail salons in the United States, there are about 2,000 nail salons in New York City alone. This New York Times research article looks at the dirty little secret of exploitation of… Read more »

Is the use of videoconferencing one to improve recidivism or profits?

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Jails are replacing face-to-face visits with video conferencing screens and are passing the costs on to inmates and their families. In some cases, these costs are up to $1 per minute. Questions: 1. Where do most videoconferencing companies make their money? 2. Who are the industry giants in prison videoconferencing? 3. Explain the last statement… Read more »

Fraud at Florida-based adult entertainment businesses

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Paul Anthony Ruggieri, accountant, pleaded guilty Friday to assisting in the tax fraud scheme of Anthony Andreozzi, the owner of two Florida-based adult entertainment businesses. Questions: 1. Based on the information in the article, how long had Mr. Ruggieri been Andreozzi’s accountant? Go to the Certified Fraud Examiner’s website and compare this amount of time… Read more »

Why Can’t I Get A Break on Airline Tickets, with Gas Down to Record Lows?

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Even with oil prices down, it seems like airline tickets are either increasing in price or staying level. In fact in October 2014, there were four separate attempts by U.S. airlines to hike airfares with mixed success. But why? Questions: 1. To what conditions does Seany attribute the high airline ticket prices? 2. Do you… Read more »

New Class Action Lawsuit

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Zillow, the number one online real estate website, is facing a $5 million class action lawsuit for intimidating employees to skip meals and work long hours without pay. Questions: 1. Who was Zillow’s top competition and how much did Zillow pay to buy the company? 2. Would this acquisition be reported on the Statement of… Read more »

Shopping Comes at A Price

Posted by & filed under Accounting Information Systems, Accounting Principles, Cost Accounting, Financial Accounting, Financial Reporting and Analysis, Intermediate Accounting, Managerial Accounting, Video Updates.

According to Chico Harlan, five years after the Great Recession, the most striking change in the world of low-income commerce has been the proliferation of rent-to-own stores. Questions: 1. How do rent to own stores avoid state usury laws and other regulations aimed at excessive interest payments? 2. What percentage of items are returned or… Read more »