The assignment involves a written analysis of the firm, Electrona, from the perspective

of a securities analyst. Electrona Corporation was founded in $1991$ and went public in

$1996$ with an offer price of $$5$ per share. By year$-$end $1999,$ Electrona$$s stock price had appreciated to over $$20$ per share. Assume that you are a securities analyst who has just begun to follow Electrona. Based on your analysis and interpretation of the information provided in the case, you are asked to provide an assessment of Electrona for your clients.

$1.$ Discussion and assessment of the financial reporting risk and any accounting issues

you identify. You are encouraged to use the following information from class notes:

a$.$ Framework for Assessing Financial Reporting Risk $$ consider specific

managerial incentives and opportunities to present misleading financial

reports, and

b$.$ Red flags that may also suggest a concern about misreporting

$2.$ Identify the $$pluses$$ and $$minuses$$ of the company from the perspective of an investor as background for making a preliminary recommendation on the stock.