What is window-dressing of current assets and liabilities? How can we recognize whether financial statements are window-dressed?
Answer to relevant QuestionsWhat is the rule of thumb governing the expected level of the current ratio? What risks are there in using this rule of thumb for analysis? What is meant by financial leverage? Identify one or more cases where leverage is advantageous.a. Why might an analysis of financial statements need to adjust the book value of assets?b. Give three examples of the need for possible adjustments to book value.Company B is a wholly owned subsidiary of Company A. Company A is also Company B's principal customer. As a potential lender to Company B, what particular facets of this relationship concern you most? What safeguards, if ...Is there a relation between level of inventories and sales? Are inventories a function of sales? If there is a relation between inventories and sales, is it proportional?
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