+1 862 207 3288 information on the financial statements
The W.T. Grant Company was the nation’s largest retailer until it filed for bankruptcy only one year after it had reported profits of over $20 million for more than ten consecutive years. Yet cash flow provided by operations started dipping several years earlier and remained negative until the company’s collapse. REQUIRED:
a. What kind of items might account for such a divergence between net income and cash flow provided by operations?
b. What information on the financial statements could have provided some warning of the company’s failure?
information on the financial statements
