Let’s Eat with Amazon!

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According to Reuters, “Amazon.com Inc is exploring a technology first developed for the U.S. military to produce tasty prepared meals that do not need refrigeration, as it looks for new ways to muscle into the $700 billion U.S. grocery business.” Questions: 1. What are some of the dishes that Amazon plans to offer? 2. What… Read more »

New Math: 1 + 1 = $455M

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An Ireland-based company, Horizon Pharma, makes a drug called Vimovo. The drug combines the two over-the-counter drugs of Nexium and Aleve and you won’t believe what they charge for it! Questions: 1. According to the article, how much does it cost to buy the new drug. Compare Vimovo’s price to the $40 for a month’s… Read more »

And the challenges go on……..

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According to the BBC, the Court of Appeal judges in London have denied Nestle’s attempts to trademark the shape of its famous four-fingered KitKat bar. Questions: 1. Which countries have granted Nestlé’s four-finger shape a trademark registration? 2. According to the article, why is it difficult to prove the case in U.K. courts? 3. Briefly… Read more »

Fantasy Accounting?

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According to the New York Times, a recent study shows that 90 percent of companies in the Standard & Poor’s 500-stock index reported non-GAAP results last year, which is up from 72 percent in 2009. Questions: 1. Do you think investors truly understand the consequences of this? 2. Which one of the tactics used do… Read more »

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

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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 »

A Bizarre Story: Watch what you say!

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A man having a colonoscopy sued two doctors and their practices for defamation and medical malpractice last week, after he found that his cell phone had recorded a most horrific “trash talking” event during his procedure, as well as evidence of a falsified diagnosis. In the trial, the jury ordered the anesthesiologist and her practice… Read more »

An Expensive Glitch

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On April 24, a computer outage hit 7,000 U.S. Starbuck’s company-owned stores and 1,000 Canadian company-owned Starbuck’s locations. The outage was resolved Friday night after several hours. Questions: 1. Did all locations deal with the problem in the same way? What did they do? 2. Why do you think that the outage did not affect… Read more »

Rip Off: We Work Hard for the Money!

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Although Guadalupe Rangel worked nearly 70 hours per week, he never saw any overtime pay at the Schneider warehouse in Mira Loma, California. As a result he joined a lawsuit involving hundreds of warehouse workers where he will likely receive more than $20,000 in back pay as part of the recent $21 million legal settlement… Read more »

Is Herbalife a Ponzi Scheme?

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Herbalife is a company that sells weight loss shakes, vitamins and other similar products worth billions of dollars. The company has been around for more than 30 years. It is traded on the New York Stock Exchange. So what could be more legitimate? Bill Ackman, who manages a hedge fund thinks the whole thing is… Read more »

Mmmmmmmmm! But watch out for the Mac & Cheese!

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

Some are calling this the new “Cheeseapocalypse” as Kraft Foods Group recalls 260 cases of Velveeta sold to Walmart because the batches lack enough preservatives and could “spoil prematurely and/or lead to food borne illness.” Questions: 1. What states are affected by the recall? 2. What ingredient is causing the recall? 3. What types of… Read more »