You had to look for information regarding five recent innovations i.e. airbnb, telegram messenger, Apple, Skip the dishes and Uber.

1. Who is the founder and when did the innovation come about?
2. Why did the need arise for these innovations?

Imagine you are about to launch your own start-up (state what is the product or service you will offer), what would be your long term goal? Sell, Maintain, or Grow that business? Why, as a founder, would you choose that option?

During 2020, Barden Building Company constructed various assets at a total cost of $14,700,000. The weighted average accumulated expenditures on assets qualifying for capitalization of interest during 2020 were $9,800,000. The company had the following debt outstanding at December 31, 2020:

1.   10%, 5-year note to finance construction of various assets,

      dated January 1, 2020, with interest payable annually on January 1                     $6,300,000

2.   12%, ten-year bonds issued at par on December 31, 2014, with interest

      payable annually on December 31                                                                            7,000,000

3.   9%, 3-year note payable, dated January 1, 2019, with interest payable

      annually on January 1                                                                                               3,500,000

Instructions - Compute the amounts of each of the following (show computations).

1. Avoidable interest.

2. Total interest to be capitalized during 2020.

During 2020, Barden Building Company constructed various assets at a total cost of $14,700,000. The weighted average accumulated expenditures on assets qualifying for capitalization of interest during 2020 were $9,800,000. The company had the following debt outstanding at December 31, 2020:

1.   10%, 5-year note to finance construction of various assets,

      dated January 1, 2020, with interest payable annually on January 1       $6,300,000

2.   12%, ten-year bonds issued at par on December 31, 2014, with interest

      payable annually on December 31                                                                    7,000,000

3.   9%, 3-year note payable, dated January 1, 2019, with interest payable

      annually on January 1                                                                                         3,500,000

Instructions

Compute the amounts of each of the following (show computations).

1.   Avoidable interest.

2.   Total interest to be capitalized during 2020.

During 2020, GR Engineering Company constructed a building for its own use at a total cost of $14,700,000.

The weighted average accumulated expenditures on assets qualifying for capitalization of interest during 2020 were $10,200,000. The company had the following debt outstanding at December 31, 2020: 1. 10%, 5-year note to finance construction of this building, dated January 1, 2020, with interest payable annually on January 1 $6,300,000 2. 12%, ten-year bonds issued at par on December 31, 2014, with interest payable annually on December 31 7,000,000 3. 9%, 4-year note payable, dated January 1, 2019, with interest payable annually on January 1 3,500,000 Compute the amounts of each of the following (show computations). 1. Avoidable interest 2. Actual interest 3. Total interest to be capitalized during 2020  

The following items were taken from the financial statements of Garcia Company.

Mortgage payable $ 2,340 Accumulated depreciation 3,560 Prepaid expenses 980 Accounts payable 1,555 Property, plant, and equipment 11,500 Notes payable due after 2020 1,200 Long-term investments 1,300 Owner’s capital 14,026 Short-term investments 3,690 Accounts receivable 1,696 Notes payable due in 2020 1,000 Inventories 1,765 Cash 2,750

Instructions: Prepare a classified balance sheet in good form (with the proper three-line heading) as of December 31, 2019.

The role of accounting education is a challenging question. Is the purpose of university accounting education to prepare students for professional practice? Or is the role of university accounting education to understand accounting?

Should the focus be conceptual, contextual or technical? Or a mix of all.

From you own work experience in accounting, what is the relationship between the technical or conceptual education you have experienced and the practice of accounting?

do you think that if a CFO is risk taking by nature she or he would do differently for capital investment programs and financial reporting behaviors? How a MBA-educated CFO vs. accounting-educated CFO would behave differently?

Best Buy ranks number 72 on the Fortune 500; it is the largest consumer electronics retailer in the world. Best known for its discounted high-quality products, customer centered approach, sustainable outreach, and extensive recycling program. Best Buy is listed as a “socially responsible” company. It was founded by Richard Schulze in 1966. Since then the company has undergone many changes.

College students, who wanted higher-end electronics, were the first customers they targeted. In 2000, when sales growth slowed, Best Buy acquired Geek Squad, a repair service. This acquisition led to their Concept 5 stores, where products are sold, and customers taught how to use them. This improved service turnaround time and increased customer satisfaction. By 2009, the company became the primary online and brick-and-mortar provider of consumer electronics.

             Best Buy views itself as a customer-centered organization. The company uses www.BestBuy.com to learn more about its customer needs and preferences. Customers can use that website to rate every product purchased. In 2007, the Company published its first Corporate Social Responsibility Report (SR) as result of the customers concern for sustainability. Electronic waste was filling landfills, and their customers wanted to see this problem addressed. In response to their concerns, Best Buy implemented a wide-scale electronics recycling program.   In 2009 Best Buy set a goal to reduce carbon emissions by 45%; by the end of 2016 they had reached nearly 47%.

             Today Best Buy employs a Chief Ethics Office and maintains a blog for company employees; it covers ethical lapses and related issues. Employees can visit the website and read about the company policy regarding ethically questionable behaviors and learn tips on how to best defend themselves from crossing ethical boundaries. Hubert Joly was appointed CEO in 2012 after a scandal forced out CEO, Brian Dunn and Chairman, Richard Schulz.

Under Joly, Best Buy, once again, became a growth company. He implemented its “Renew Blue” strategy, adding new product lines and services and emphasizing both in-store and online customer opportunities. Its Geek Squad division began an in-store, online, and home advisory program. He expanded into both Canadian and Mexican markets. Operations in China and Europe were closed to reduce costs, and he closed some domestic stores, under his lean management mandate.

             To improve customer service, the “Geek Squad hours were expanded to provide 24-hour service on site, at home, or through the Internet. The tech experts make about 4 million home calls a year. Walmart and Amazon their biggest competitors do not offer comparable at-home services. In March 2017, “Renew Blue” was officially closed by Joly and pronounced a success.

             In 2017, Joly announced the company will implement “Best Buy 2020 - Building the New Blue.” Best Buy began a try-before-you-buy program which allows the customer to rent gadgets such as audio equipment, fitness trackers, smartwatches, and cameras. If the customer decides to keep the product, 20% of the rental fee is deducted and applied to the final cost of the product.

             Best Buy will continue demonstrating new technology solutions, contracts and services and sustainability . The company plans to enhance their smart home areas in all stores, roll out its Best Buy Smart Home Powered by Vivint home automation and security offering to 450 stores, which will add 1,500 dedicated smart home employees. The “Geek Squad” expanded services will include “Smart Home ‘Total Tech Services, which will service every electronic product in your home no matter where the product was purchased and create a totally integrated technology system for your home.

Another service Best Buy will provide is the Smart Home Senior Care Services,” which is considered an “untapped white space opportunity.” The electronic “Assured Living” system will allow millennials /caregivers to look in on their aging parents while permitting the seniors to live independently. Mr. Joly envisions rolling out a broader business of sensor-based senior services, sold through health-and-wellness departments in Best Buy’s more than 1,000 stores.   With an aging population in the U.S., there will be 70 million people who will be seniors in 2027. Best Buy sees this growth opportunity and will use the Smart Home Business and its ability to get into people’s home as a trusted adviser.

Question:

How does Best Buy deal with ethically questionable behaviors, in short essay form