+1 862 207 3288 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?
