Question: 7. Change in Accruals = [(NI-OCF.) + Average Assetst] - [(NIE 1-OCF-1) - Average Assets: 1] In June 2004, InfoSonics Corporation went public in its
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7. Change in Accruals = [(NI-OCF.) + Average Assetst] - [(NIE 1-OCF-1) - Average Assets: 1] In June 2004, InfoSonics Corporation went public in its initial public offering, or IPO (i.c., a transaction wherein a company sells its shares to the public for the first time). Per InfoSonics IPO prospectus, their Revenues increased by 40% and their "Change in Accruals metric was +58%. In February 2004, Kinetic Concepts Inc. went public in its IPO. Per Kinetic Concepts IPO prospectus, their Revenues increased by 32% and their "Change in Accruals metric was -48%. What might lofoSonics' metric of +58% suggest, or be a hint of? What might Kinetic Concepts' metric of -48% suggest, or be a hint of? (4 points) 7. Change in Accruals = [(NI-OCF.) + Average Assetst] - [(NIE 1-OCF-1) - Average Assets: 1] In June 2004, InfoSonics Corporation went public in its initial public offering, or IPO (i.c., a transaction wherein a company sells its shares to the public for the first time). Per InfoSonics IPO prospectus, their Revenues increased by 40% and their "Change in Accruals metric was +58%. In February 2004, Kinetic Concepts Inc. went public in its IPO. Per Kinetic Concepts IPO prospectus, their Revenues increased by 32% and their "Change in Accruals metric was -48%. What might lofoSonics' metric of +58% suggest, or be a hint of? What might Kinetic Concepts' metric of -48% suggest, or be a hint of? (4 points)
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