need help fast got an exam over these examples tomorrow.


Question Description:

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Company Accounting Issue Impact on Earnings Quality Substance/Sustainability
1.        Monsanto Paying $80 million to settle charges that it misstated company earnings for product Roundup.  Did not account for rebates in correct time period.    
2.        Wal-Mart Has been reducing inventory and has stretched out payment terms.  Workers now restock during the day to cut down on manual orders.  Predicting profits will decrease by as much as 12%.  Closing stores    
3.        Hasbro Stars Wars toys led to a 35% increase in boys segment helping overall revenue increase by 13% to $1.47 billion    
4.        Bed, Bath & Beyond Shares have fallen by approximately 20% since the beginning of 2015.  Gross margins are under pressure from increased coupon use and they have shifted towards less profitable goods (small appliances) and away from higher margin good (where the competition is steeper)    
5.        A T & T Recorded $2.2 billion gain from revised pension accounting in December, 2015.    
6.       American Airlines/Airline industry Lower fuel costs, average airfare increase of 3% in 2014 , higher labor costs, planes at average of 85% capacity    
7.       Volkswagen Emissions Cheating    
8.        Toshiba Overstated profits by nearly $2 billion over a six year period.  Selling TV manufacturing plant in Indonesia to raise cash In January, 2016 obtained a line of credit for $2.5 billion.  This is in addition to the September, 2015 $3.2 billion line of credit.    
9.       Avonex:  Prescription Drug Makers Demand for Avonex has declined every year for the last 10 years.  However, U.S. revenue for Avonex has doubled due to repeated price increases beyond the inflation rate.    
10.    Uber impact on Taxi companies Cab drivers must purchases medallions to operate taxi service.  Uber affects taxi services and also the financial institutions that lend money to purchase the medallions.

The competitive environment can change quickly and affect your customers which can create risks for your business.

   

Answer

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