The finance industry and financial reports

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The Finance Industry and Financial Reports

Do Numbers Lie? The Other Side of Financial Statement Analysis

If you were to enter the banking industry you may find yourself approving or not approving loans. The following is a good example of a common event you may encounter.

Company X is looking for a $100,000 to purchase new equipment. The finance manager for Company X recently presented financial reports. Upon further analysis of the statements you, the banker, noted some window dressing of the financial statement. In this case it seems Company X will delay payments to vendors in order to make their cash position look higher.

Do you see this practice a matter of ethical and or legal concern?

Do you think most all company's "window dress" their data?

Reference no: EM13843189

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