Question: question below: Change in Accruals = [(NIt - OCFt) + Average Assetst] - [(NIt-1 - OCFt-1) + Average Assetst-1] In June 2004, InfoSonics Corporation went
question below: Change in Accruals = [(NIt - OCFt) + Average Assetst] - [(NIt-1 - OCFt-1) + Average Assetst-1] In June 2004, InfoSonics Corporation went public in its initial public offering, or IPO (i.e., 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 InfoSonics' metric of +58% suggest, or be a hint of? What might Kinetic Concepts' metric of -48% suggest, or be a hint of? (4 points) question below: Change in Accruals = [(NIt - OCFt) + Average Assetst] - [(NIt-1 - OCFt-1) + Average Assetst-1] In June 2004, InfoSonics Corporation went public in its initial public offering, or IPO (i.e., 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 InfoSonics' 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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