The process of filing every year is met with dread and resignation from businesses and individuals alike. The U.S. tax code is extremely large and complex. What’s worse, even a small mistake could lead to an audit or fine from the IRS. For context, tax statutes passed by Congress into law total about 2,652 pages [...]
In 1993, Quaker Oats bought Snapple for $1.7 billion... about $1 billion higher than what most thought the company was “worth” on Wall Street. Following its previous success with Gatorade, Quaker must have thought it could replicate the formula, leveraging its expertise with supermarkets and retailers to generate great rewards for investors. However, its efforts [...]
Ames Department Stores serves as a great reminder to investors of the dangers of flawed fair value accounting. Ames was a discount retailer in the US that filed for bankruptcy in 1990. It closed well over 300 of its stores and fired 26,000 employees in an effort to pay off its creditors.