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Question: Holmes Corporation is a leading designer and

Holmes Corporation is a leading designer and manufacturer of material handling and processing equipment for heavy industry in the United States and abroad. Its sales have more than doubled, and its earnings have increased more than six fold in the past five years. In material handling, Holmes is a major producer of electric overhead and gantry cranes, ranging from 5 tons in capacity to 600-ton giants, the latter used primarily in nuclear and conventional power-generating plants. It also builds under hung cranes and monorail systems for general industrial use carrying loads up to 40 tons, railcar movers, railroad and mass transit shop maintenance equipment, and a broad line of advanced package conveyors. Holmes is a world leader in evaporation and crystallization systems and furnishes dryers, heat exchangers, and filters to complete its line of chemical processing equipment sold internationally to the chemical, fertilizer, food, drug, and paper industries. For the metallurgical industry, it designs and manufactures electric arc and induction furnaces, cupolas, ladles, and hot metal distribution equipment. The information below and on the following pages appears in the Year 15 annual report of Holmes Corporation.
Holmes Corporation is a leading designer and manufacturer of material handling and processing equipment for heavy industry in the United States and abroad. Its sales have more than doubled, and its earnings have increased more than six fold in the past five years. In material handling, Holmes is a major producer of electric overhead and gantry cranes, ranging from 5 tons in capacity to 600-ton giants, the latter used primarily in nuclear and conventional power-generating plants. It also builds under hung cranes and monorail systems for general industrial use carrying loads up to 40 tons, railcar movers, railroad and mass transit shop maintenance equipment, and a broad line of advanced package conveyors. Holmes is a world leader in evaporation and crystallization systems and furnishes dryers, heat exchangers, and filters to complete its line of chemical processing equipment sold internationally to the chemical, fertilizer, food, drug, and paper industries. For the metallurgical industry, it designs and manufactures electric arc and induction furnaces, cupolas, ladles, and hot metal distribution equipment. The information below and on the following pages appears in the Year 15 annual report of Holmes Corporation. Management’s Report to Shareholders Year 15 was a pleasant surprise for all of us at Holmes Corporation. When the year started, it looked as though Year 15 would be a good year but not up to the record performance of Year 14. However, due to the excellent performance of our employees and the benefit of a favorable acquisition, Year 15 produced both record earnings and the largest cash dividend outlay in the company’s 93-year history. There is no doubt that some of the attractive orders received in late Year 12 and early Year 13 contributed to Year 15 profit. But of major significance was our organization’s favorable response to several new management policies instituted to emphasize higher corporate profitability. Year 15 showed a net profit on net sales of 6.4%, which not only exceeded the 6.0% of last year but represents the highest net margin in several decades. Net sales for the year were $102,698,836, down 6% from the $109,372,718 of a year ago but still the second largest volume in our history. Net earnings, however, set a new record at $6,601,908, or $3.62 per common share, which slightly exceeded the $6,583,360, or $3.61 per common share, earned last year. Cash dividends of $2,241,892 paid in Year 15 were 57% above the $1,426,502 paid a year ago. The record total resulted from your Board’s approval of two increases during the year. When we implemented the 5-for-4 stock distribution in June, Year 15, we maintained the quarterly dividend rate of $0.325 on the increased number of shares for the January payment. Then, in December, Year 15, we increased the quarterly rate to $0.375 per share. Year 15 certainly was not the most exuberant year in the capital equipment markets. Fortunately, our heavy involvement in ecology improvement, power generation, and international markets continued to serve us well, with the result that new orders of $95,436,103 were 18% over the $80,707,576 of Year 14. Economists have predicted a substantial capital spending upturn for well over a year, but, so far, our customers have displayed stubborn reluctance to place new orders amid the uncertainty concerning the economy. Confidence is the answer. As soon as potential buyers can see clearly the future direction of the economy, we expect the unleashing of a large latent demand for capital goods, producing a much-expanded market for Holmes’ products. Fortunately, the accelerating pace of international markets continues to yield new business. Year 15 was an excellent year on the international front as our foreign customers continue to recognize our technological leadership in several product lines. Net sales of Holmes products shipped overseas and fees from foreign licensees amounted to $30,495,041, which represents a 31% increase over the $23,351,980 of a year ago. Management fully recognizes and intends to take maximum advantage of our technological leadership in foreign lands. The latest manifestation of this policy was the acquisition of a controlling interest in Socie ´te ´ Française Holmes Fermont, our Swenson process equipment licensee located in Paris. Holmes and a partner started this firm 14 years ago as a sales and engineering organization to function in the Common Market. The company currently operates in the same mode. It owns no physical manufacturing assets, subcontracting all production. Its markets have expanded to include Spain and the East European countries. Holmes Fermont is experiencing strong demand in Europe. For example, in early May, a $5.5 million order for a large potash crystallization system was received from a French engineering company representing a Russian client. Management estimates that Holmes Fermont will contribute approximately $6 to $8 million of net sales in Year 16. Holmes’ other wholly owned subsidiaries—Holmes Equipment Limited in Canada; Ermanco Incorporated in Michigan; and Holmes International, Inc., our FSC (Foreign Sales Corporation)— again contributed substantially to the success of Year 15. Holmes Equipment Limited registered its second-best year. However, capital equipment markets in Canada have virtually come to a standstill in the past two quarters. Ermanco achieved the best year in its history, while Holmes International, Inc., had a truly exceptional year because of the very high level of activity in our international markets. The financial condition of the company showed further improvement and is now unusually strong as a result of very stringent financial controls. Working capital increased to $23,100,863 from $19,029,626, a 21% improvement. Inventories decreased 6% from $18,559,231 to $17,491,741. The company currently has no long-term or short-term debt, and has considerable cash in short-term instruments. Much of our cash position, however, results from customers’ advance payments, which we will absorb as we make shipments on the contracts. Shareholders’ equity increased 19% to $29,393,803 from $24,690,214 a year ago. Plant equipment expenditures for the year were $1,172,057, down 18% from $1,426,347 of Year 14. Several appropriations approved during the year did not require expenditures because of delayed deliveries beyond Year 15. The major emphasis again was on our continuing program of improving capacity and efficiency through the purchase of numerically controlled machine tools. We expanded the Ermanco plant by 50%, but since this is a leasehold arrangement, we made only minor direct investments. We also improved the Canadian operation by adding more manufacturing space and installing energy-saving insulation…………………….

Holmes Corporation is a leading designer and manufacturer of material handling and processing equipment for heavy industry in the United States and abroad. Its sales have more than doubled, and its earnings have increased more than six fold in the past five years. In material handling, Holmes is a major producer of electric overhead and gantry cranes, ranging from 5 tons in capacity to 600-ton giants, the latter used primarily in nuclear and conventional power-generating plants. It also builds under hung cranes and monorail systems for general industrial use carrying loads up to 40 tons, railcar movers, railroad and mass transit shop maintenance equipment, and a broad line of advanced package conveyors. Holmes is a world leader in evaporation and crystallization systems and furnishes dryers, heat exchangers, and filters to complete its line of chemical processing equipment sold internationally to the chemical, fertilizer, food, drug, and paper industries. For the metallurgical industry, it designs and manufactures electric arc and induction furnaces, cupolas, ladles, and hot metal distribution equipment. The information below and on the following pages appears in the Year 15 annual report of Holmes Corporation. Management’s Report to Shareholders Year 15 was a pleasant surprise for all of us at Holmes Corporation. When the year started, it looked as though Year 15 would be a good year but not up to the record performance of Year 14. However, due to the excellent performance of our employees and the benefit of a favorable acquisition, Year 15 produced both record earnings and the largest cash dividend outlay in the company’s 93-year history. There is no doubt that some of the attractive orders received in late Year 12 and early Year 13 contributed to Year 15 profit. But of major significance was our organization’s favorable response to several new management policies instituted to emphasize higher corporate profitability. Year 15 showed a net profit on net sales of 6.4%, which not only exceeded the 6.0% of last year but represents the highest net margin in several decades. Net sales for the year were $102,698,836, down 6% from the $109,372,718 of a year ago but still the second largest volume in our history. Net earnings, however, set a new record at $6,601,908, or $3.62 per common share, which slightly exceeded the $6,583,360, or $3.61 per common share, earned last year. Cash dividends of $2,241,892 paid in Year 15 were 57% above the $1,426,502 paid a year ago. The record total resulted from your Board’s approval of two increases during the year. When we implemented the 5-for-4 stock distribution in June, Year 15, we maintained the quarterly dividend rate of $0.325 on the increased number of shares for the January payment. Then, in December, Year 15, we increased the quarterly rate to $0.375 per share. Year 15 certainly was not the most exuberant year in the capital equipment markets. Fortunately, our heavy involvement in ecology improvement, power generation, and international markets continued to serve us well, with the result that new orders of $95,436,103 were 18% over the $80,707,576 of Year 14. Economists have predicted a substantial capital spending upturn for well over a year, but, so far, our customers have displayed stubborn reluctance to place new orders amid the uncertainty concerning the economy. Confidence is the answer. As soon as potential buyers can see clearly the future direction of the economy, we expect the unleashing of a large latent demand for capital goods, producing a much-expanded market for Holmes’ products. Fortunately, the accelerating pace of international markets continues to yield new business. Year 15 was an excellent year on the international front as our foreign customers continue to recognize our technological leadership in several product lines. Net sales of Holmes products shipped overseas and fees from foreign licensees amounted to $30,495,041, which represents a 31% increase over the $23,351,980 of a year ago. Management fully recognizes and intends to take maximum advantage of our technological leadership in foreign lands. The latest manifestation of this policy was the acquisition of a controlling interest in Socie ´te ´ Française Holmes Fermont, our Swenson process equipment licensee located in Paris. Holmes and a partner started this firm 14 years ago as a sales and engineering organization to function in the Common Market. The company currently operates in the same mode. It owns no physical manufacturing assets, subcontracting all production. Its markets have expanded to include Spain and the East European countries. Holmes Fermont is experiencing strong demand in Europe. For example, in early May, a $5.5 million order for a large potash crystallization system was received from a French engineering company representing a Russian client. Management estimates that Holmes Fermont will contribute approximately $6 to $8 million of net sales in Year 16. Holmes’ other wholly owned subsidiaries—Holmes Equipment Limited in Canada; Ermanco Incorporated in Michigan; and Holmes International, Inc., our FSC (Foreign Sales Corporation)— again contributed substantially to the success of Year 15. Holmes Equipment Limited registered its second-best year. However, capital equipment markets in Canada have virtually come to a standstill in the past two quarters. Ermanco achieved the best year in its history, while Holmes International, Inc., had a truly exceptional year because of the very high level of activity in our international markets. The financial condition of the company showed further improvement and is now unusually strong as a result of very stringent financial controls. Working capital increased to $23,100,863 from $19,029,626, a 21% improvement. Inventories decreased 6% from $18,559,231 to $17,491,741. The company currently has no long-term or short-term debt, and has considerable cash in short-term instruments. Much of our cash position, however, results from customers’ advance payments, which we will absorb as we make shipments on the contracts. Shareholders’ equity increased 19% to $29,393,803 from $24,690,214 a year ago. Plant equipment expenditures for the year were $1,172,057, down 18% from $1,426,347 of Year 14. Several appropriations approved during the year did not require expenditures because of delayed deliveries beyond Year 15. The major emphasis again was on our continuing program of improving capacity and efficiency through the purchase of numerically controlled machine tools. We expanded the Ermanco plant by 50%, but since this is a leasehold arrangement, we made only minor direct investments. We also improved the Canadian operation by adding more manufacturing space and installing energy-saving insulation…………………….
Management’s Report to Shareholders Year 15 was a pleasant surprise for all of us at Holmes Corporation. When the year started, it looked as though Year 15 would be a good year but not up to the record performance of Year 14. However, due to the excellent performance of our employees and the benefit of a favorable acquisition, Year 15 produced both record earnings and the largest cash dividend outlay in the company’s 93-year history. There is no doubt that some of the attractive orders received in late Year 12 and early Year 13 contributed to Year 15 profit. But of major significance was our organization’s favorable response to several new management policies instituted to emphasize higher corporate profitability. Year 15 showed a net profit on net sales of 6.4%, which not only exceeded the 6.0% of last year but represents the highest net margin in several decades. Net sales for the year were $102,698,836, down 6% from the $109,372,718 of a year ago but still the second largest volume in our history. Net earnings, however, set a new record at $6,601,908, or $3.62 per common share, which slightly exceeded the $6,583,360, or $3.61 per common share, earned last year. Cash dividends of $2,241,892 paid in Year 15 were 57% above the $1,426,502 paid a year ago. The record total resulted from your Board’s approval of two increases during the year. When we implemented the 5-for-4 stock distribution in June, Year 15, we maintained the quarterly dividend rate of $0.325 on the increased number of shares for the January payment. Then, in December, Year 15, we increased the quarterly rate to $0.375 per share. Year 15 certainly was not the most exuberant year in the capital equipment markets. Fortunately, our heavy involvement in ecology improvement, power generation, and international markets continued to serve us well, with the result that new orders of $95,436,103 were 18% over the $80,707,576 of Year 14. Economists have predicted a substantial capital spending upturn for well over a year, but, so far, our customers have displayed stubborn reluctance to place new orders amid the uncertainty concerning the economy. Confidence is the answer. As soon as potential buyers can see clearly the future direction of the economy, we expect the unleashing of a large latent demand for capital goods, producing a much-expanded market for Holmes’ products. Fortunately, the accelerating pace of international markets continues to yield new business. Year 15 was an excellent year on the international front as our foreign customers continue to recognize our technological leadership in several product lines. Net sales of Holmes products shipped overseas and fees from foreign licensees amounted to $30,495,041, which represents a 31% increase over the $23,351,980 of a year ago. Management fully recognizes and intends to take maximum advantage of our technological leadership in foreign lands. The latest manifestation of this policy was the acquisition of a controlling interest in Socie ´te ´ Française Holmes Fermont, our Swenson process equipment licensee located in Paris. Holmes and a partner started this firm 14 years ago as a sales and engineering organization to function in the Common Market. The company currently operates in the same mode. It owns no physical manufacturing assets, subcontracting all production. Its markets have expanded to include Spain and the East European countries. Holmes Fermont is experiencing strong demand in Europe. For example, in early May, a $5.5 million order for a large potash crystallization system was received from a French engineering company representing a Russian client. Management estimates that Holmes Fermont will contribute approximately $6 to $8 million of net sales in Year 16. Holmes’ other wholly owned subsidiaries—Holmes Equipment Limited in Canada; Ermanco Incorporated in Michigan; and Holmes International, Inc., our FSC (Foreign Sales Corporation)— again contributed substantially to the success of Year 15. Holmes Equipment Limited registered its second-best year. However, capital equipment markets in Canada have virtually come to a standstill in the past two quarters. Ermanco achieved the best year in its history, while Holmes International, Inc., had a truly exceptional year because of the very high level of activity in our international markets. The financial condition of the company showed further improvement and is now unusually strong as a result of very stringent financial controls. Working capital increased to $23,100,863 from $19,029,626, a 21% improvement. Inventories decreased 6% from $18,559,231 to $17,491,741. The company currently has no long-term or short-term debt, and has considerable cash in short-term instruments. Much of our cash position, however, results from customers’ advance payments, which we will absorb as we make shipments on the contracts. Shareholders’ equity increased 19% to $29,393,803 from $24,690,214 a year ago. Plant equipment expenditures for the year were $1,172,057, down 18% from $1,426,347 of Year 14. Several appropriations approved during the year did not require expenditures because of delayed deliveries beyond Year 15. The major emphasis again was on our continuing program of improving capacity and efficiency through the purchase of numerically controlled machine tools. We expanded the Ermanco plant by 50%, but since this is a leasehold arrangement, we made only minor direct investments. We also improved the Canadian operation by adding more manufacturing space and installing energy-saving insulation…………………….





Transcribed Image Text:

Year 15 Year 14 $102,698,836 $6,601,908 $109,372,718 $6,583,360 Net sales Net earnings Net earnings per share $3.62 $3.61* Cash dividends paid $2,241,892 $1,426,502 Cash dividends per share $1.22* $0.78* Shareholders' equity Shareholders' equity per share Working capital Orders received $29,333,803 $24,659,214 $1607* $13.51* $23,100,863 $19,029,626 95,436,103 80,707,576 Unfilled orders at end of period Average number of common shares outstanding during period 77,455,900 84,718,633 1,824,853 1,824,754 Net Sales, Net Earnings, and Net Earnings per Share by Quarter Year 15 Year 14 Net Earnings Net Earnings Net Sales Per Share Net Sales Per Share $ 25,931,457 $ 21,768,077 28,514,298 First quarter Second quarter Third quarter Fourth quarter $1,602,837 $0.88 $1,126,470 $0.62 24,390,079 1,727,112 0.95 1,716,910 0.94 25,327,226 1,505,118 0.82 28,798,564 1,510,958 0.82 27,050,074 1,766,841 0.97 30,291,779 2,229,022 1.23 $102,698,836 $6,601,908 $3.62 $109,372,718 $6,583,360 $3.61 Common Stock Prices and Cash Dividends Paid per Common Share by Quarter Year 15 Year 14 Stock Prices Cash Dividends Stock Prices Cash Dividends High Low per Share High Low per Share First quarter Second quarter $22% $ 18% $0.26 $114 $ 9% $0.16 25% 19% 0.26 12% 8% 0.16 Third quarter topyright 2018 Cengage Learning. All Rights Reserved. May not be copied scanned, or duplicated, in whole or in pat WCN 02-200-203 26% 194 0.325 154 11% 0.20 Fourth quarter 28% 23% 0.375 20% 15% 0.26 $1.22 $0.78

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> It is common practice for retail outlets to lease their store locations and distribution centers. Walmart is no exception. Note 11 to Walmart’s consolidated financial statements for the fiscal year ending January 31, 2016 (found online at the text websit

> Assume Boeing sold a 767 aircraft to American Airlines on January 1, 2016. The sales agreement required American Airlines to pay $10 million immediately and $10 million on December 31 of each year for 20 years, beginning on December 31, 2016. Boeing and

> Explain the implications of a value to-book ratio that is greater than the market-to-book ratio. Explain the implications of a value to-book ratio that is less than the market-to-book ratio.

> Using the evidence presented in Exhibit 14.8, describe the extent to which the market is efficient with respect to quarterly earnings surprises during the 60 trading days prior to quarterly earnings announcements. Using the evidence presented in Exhibit

> Identify three economic factors that will drive a firm’s value-to-book ratio to be higher than that of other firms in the same industry. Identify three accounting factors that will drive a firm’s value-to-book ratio to be higher than that of other firms

> Explain the implications of a value to-book ratio that is exactly equal to 1. Compare the implications of a value-to-book ratio that is greater than 1 to those of a value-to-book ratio that is less than 1.

> Explain the theory behind the residual income valuation approach. Why is residual income value relevant to common equity shareholders?

> Explain residual income. How is it measured? What does residual income represent?

> Arbortech, a designer, manufacturer, and marketer of PC cards for computers, printers, telecommunications equipment, and equipment diagnostic systems, was the darling of Wall Street during Year 6. Its common stock price was the leading gainer for the yea

> Conceptually, why should you expect a valuation based on dividends, a valuation based on the free cash flows for common equity shareholders, and a valuation based on residual income to yield equivalent value estimates for a given firm?

> Explain the theory behind the free-cash-flows valuation approaches. Why are free cash flows value-relevant to common equity shareholders when they are not cash flows to those shareholders but rather are cash flows into the firm?

> The chapter describes how firms must use flexible financial accounts to maintain equality between assets and claims on assets from liabilities and equities. Chapter 1 describes how some firms progress through different life-cycle stages—from introduction

> Use the following hypothetical data for Walgreens in 2014 and 2015 to project revenues, cost of goods sold, and inventory for Year þ1. Assume that Walgreens’s Year þ1 revenue growth rate, gross profit margi

> The chapter describes how the dividends-based valuation approach measures dividends to encompass various transactions between the firm and the common shareholders. What transactions should you include in measuring dividends for the purposes of implementi

> The chapter asserts that dividends are value relevant even though the firm’s dividend policy is irrelevant. How can that be true? What is the key assumption in the theory of dividend policy irrelevance?

> Why is the dividends based valuation approach applicable to firms that do not pay periodic (quarterly or annual) dividends?

> Explain why analysts and investors use risk adjusted expected rates of return as discount rates in valuation. Why do investors expect rates of return to increase with risk?

> The notes to a firm’s financial statements reveal that the obligations for postretirement health care benefits at the end of 2017 total $2.1 billion. The fair value of plan assets for these benefits at the end of 2017 is reported at zero, with an unrecog

> Given the following information, compute December 31, 2017, projected benefit obligation (PBO) and fair market value (FMV) of plan assets for Lee Company. What amount of asset or liability will be reported on the balance sheet at December 31, 2017? Prio

> Citigroup Inc. (Citi) is a leading global financial services company with over 200 million customer accounts and operations in more than 140 countries. Its operating units Citicorp and Citi Holdings provide a broad range of financial products and service

> HeavyEQ produces large conveyor belt systems for heavy manufacturing. HeavyEQ signs a $2 million fixed-price contract under which it makes three promises: ● Install a conveyor belt system: fair value $1.6 million ● Service the system over a five-year per

> Bookman Co. develops digital accounting systems and provides accounting-related consulting services. a. On January 1, 2017, Bookman signs a contract with Brock Florists to install a system and provide consulting services over a two-year period ending in

> Financial reporting classifies derivatives as (a) speculative investments, (b) fair value hedges, or (c) cash flow hedges. However, firms revalue all derivatives to market value each period regardless of the firm’s reason for acquiring the derivatives

> New lease standards become effective January 1, 2019. These standards affect the accounting for operating leases. Assume Swift Company acquires a machine with a fair value of $100,000 on January 1 of Year 1 by signing a five-year lease. Swift must make p

> Assume that Circuit City owes Synovus Bank $1,000,000 on a four-year, 7% note originally issued at par. After one year of making scheduled payments, Circuit City faces financial difficulty. At the end of the second year, Circuit City owes Synovus $1,000,

> Assume that on December 31, 2017, The Coca-Cola Company borrows money from a consortium of banks by issuing a $900 million promissory note. The note matures in four years on December 31, 2021, and pays 3% interest once a year on December 31. The consorti

> Nestle ´ Group, a multinational food products firm based in Switzerland, recently issued its financial statements. The auditor’s opinion attached to the financial statements stated the following: ‘‘In our opinion, the financial statements for the year en

> Checkpoint Systems, a leading provider of source tagging, handheld labeling systems, retail merchandising systems, and bar-code labeling systems, stated the following in a press release: GAAP reported net loss for the fourth quarter of 2004 was $29.3 mil

> Rock of Ages, Inc., a large North American integrated granite quarrier, manufacturer, and retailer of finished granite memorials, reported a net loss for 2004 of $3.2 million. In 2004, the firm reported a pretax litigation settlement loss of $6.5 million

> Valero Energy, a petroleum company, reported net income (amounts in millions) of $1,803.8 on revenues of $54,618.6 for Year 4. Interest expense totaled $359.7, and preferred dividends totaled $12.5. Average total assets for Year 4 were $17,527.9. The inc

> Exhibits 1.26–1.28 of Integrative Case 1.1 (Chapter 1) present the financial statements for Walmart for 2012 to 2015. In addition, the website for this text contains Walmart’s December 31, 2015, Form 10-K. You should r

> Firms often provide supplemental disclosures that report and discuss income figures that do not necessarily equal bottom-line net income from the income statement. For example, in Twitter’s initial public offering filings with the SEC, the company report

> iRobot designs and manufactures robots for consumer, commercial, and military use. For the fiscal year ended January 2, 2016, the company reported the following on its balance sheet and income statement (amounts in thousands): ● Accounts receivable, net

> ‘‘The ordering of the three sections of the statement of cash flows is ‘backwards’ for start-up firms, but it is more appropriate for businesses once they are up and running.’’ Explain.

> The chapter demonstrates how to prepare a statement of cash flows from information on the balance sheet and income statement. If this is possible, why are managers required to provide a statement of cash flows?

> A firm’s income tax return shows income taxes for 2017 of $35,000. The firm reports deferred tax assets before any valuation allowance of $24,600 at the beginning of 2017 and $27,200 at the end of 2017. It reports deferred tax liabilities of $18,900 at t

> A firm’s income tax return shows $50,000 of income taxes owed for 2017. For financial reporting, the firm reports deferred tax assets of $42,900 at the beginning of 2017 and $38,700 at the end of 2017. It reports deferred tax liabilities of $28,600 at th

> Apply the economic attributes framework discussed in the chapter to the specialty retailing apparel industry, which includes such firms as Gap, Limited Brands, and Abercrombie & Fitch.

> Aer Lingus is an international airline based in Ireland. Exhibit 3.24 provides the statement of cash flows for Year 1 and Year 2, which includes a footnote from the financial statements. Year 2 was characterized by weakening consumer demand for air trave

> The Apollo Group is one of the largest providers of private education and runs numerous programs and services, including the University of Phoenix. Exhibit 3.23 provides statements of cash flows for 2010 through 2012. REQUIRED: Discuss the relations bet

> Montgomery Ward operates a retail department store chain. It filed for bankruptcy during the first quarter of Year 12. Exhibit 3.22 presents a statement of cash flows for Montgomery Ward for Year 7 to Year 11. Exhibit 3.22: The firm acquired Lechmere,

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