Change in Accruals = [(NI-OCF) + Average Assets)-[(NI₁-1-OCF₁-1) + Average Assets. In June 2004, InfoSonics Corp. went public in an initial public offering (IPO), 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 / be a hint of? What might Kinetic Concepts' metric of -48% suggest/ be a hint of?

Change in Accruals = [(NI-OCF) + Average Assets)-[(NI₁-1-OCF₁-1) + Average Assets. In June 2004, InfoSonics Corp. went public in an initial public offering (IPO), 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 / be a hint of? What might Kinetic Concepts' metric of -48% suggest/ be a hint of?

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter5: Corporations: Earnings & Profits And Dividend Distributions

Section: Chapter Questions

Problem 31P

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