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Please open the attachment, all I need help with i...




Please open the attachment, all I need help with is all of part 1, most importantly sections a, and b. Before you submit an answer, I warn you, I have already reviewed similar answers that I have been provided for this same problem, found on course hero, and other sites, and I am not satisfied with those answers. So please do not simply copy and paste previous answers to this problem, and think that it is going to be sufficient. The solutions previously given are not correct, not are they of good quality. I thank you in advance. The attachment provides all needed info. Thanks a bunch! ;-) PART 1 - There are a number of interesting differences between Sunbeam's 1997 and 1996 balance sheets (e.g., receivables increased by $82 million, inventories increased by $94 million, and pre-paid expenses decreased by $23 million, while long-term productive assets and liabilities remained relatively unchanged), and between its 1997 and 1996 income statements (e.g., during 1997 the company engaged in a number of "buy and hold" transactions, gross margin increased dramatically and SG&A declined). a. (maximum 7 points out of 13) - Adjust Sunbeam's 1997 Earning before interest and taxes for one-time events and apparent (e.g., doubtful accounts, depreciation expense, and etc.) changes in accounting policy. You may want to compute some comparative ratios to facilitate your analysis. Be sure to provide the details of and clearly label any computations. b. (maximum 4 points out of 13) - Utilizing your adjusted numbers from 1)a. (above) re-compute Sunbeam?s operating cash flows for 1997 (i.e., compute a new cash flows amount based on your adjustments to the original data). Clearly label the components of your computations. c. (maximum 2 points out of 13) - Summarize your findings in 1)a. and 1)b. (above), paying particular attention to any evidence of fraud (be careful not to let 20-20 hindsight ? i.e., information that you are aware of, but is not included in this case ? influence your conclusions).


Paper#1547 | Written in 18-Jul-2015

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