Too little inventory, then too much inventory. Would you like doing inventory planning/procurement for a company such as Nike?
With respect to inflation and LIFO, what would you prefer as CFO: maximizing earnings or minimizing taxes?
Stock valuations that are derived from textbook models are having a hard time explaining observed stock prices for many firms. Why?
Are you surprised at the amount of loan loss provisions at GS, JPM, C? What does it signal about the economic outlook in general and about the firm specific outlook? Can you do the journal entries? Are they cash or non-cash? What is the cash flow effect?
Zero based budgeting and cost cutting, some have argued, led to Kraft’s problems, including writedowns (and subsequently, lawsuits). When is it time to cut and when is it not? Under what circumstances? Which types of industries?
The pressure to hit Wall Street consensus expectations can make some go over to the “dark side.” How prevalent is this tendency, in your opinion? What additional steps do you think could or should be done to prevent such behaviors?
How would you determine whether corporate balance sheets are “too” levered? What benchmarks would you use? What are the risks of too much debt, both for the firm and for the economy?
What are your thoughts about the “pecking order” of capital and how it may have played a role in the bankruptcy?
Tesla seems to be renegotiating with vendors after sales have been booked. What are the accounting implications from Tesla’s perspective? From the vendor’s perspective? What ratios are affected by longer payment terms and by rebates? What other sources of capital are available for Tesla at this point?
Even if the SEC moves to semi-annual reporting (instead of quarterly), do you believe much will change in the overall information environment? Why or why not?
So, Walgreens and others collectively will add a few trillion in liabilities to their balance sheets for operating leases, beginning in 2019. What do you anticipate as market reactions to the changes, if any?
If you were a supplier to one of the companies that is taking longer to pay, what course of action would you (could you) take?
JC Penney’s inventory levels are “too high.” If you were in charge, what would be the appropriate level of inventory? How would you determine it? Where do you think JCP will be in 2 years, 5 years as a company? Can you see that far into the future?
How might GE’s culture of so-called “success theater” have contributed to potentially aggressive accounting (revenue recognition) practices? What systems may help control such tendencies, if they are indeed problematic?
What is the deferred tax consequence, if any, if firms are required under the new tax law to capitalize R&D, but still expense R&D on the income statement? What are the potential valuation effects (stock price effects), if any?
How would you make the adjustment to earnings (and maybe cash flows) to compare “apples to apples”, for the effect of the new tax law, which transitions to a territorial system, but not before imposing a one-time tax on overseas accumulated profits? What, if any, are value implications for these firms?
How will the higher costs (expenses) be reflected in the financial statements? What ratios will be affected? How do you think stock prices will react?
