Expert Answers

1. What do you think is the best method to determine if a company is losing sales? Give reasons to support your answers.
2. How can you tell if a company has too much cash? Why does a company seek to increase or decrease its cash holding? What do you think the company should do with excess cash? Explain how this may affect the company.
3. Explain the short-term and long-term effects of a stock-split and a reverse stock-split on a company’s financial statements.
4. What is the impact of product returns by customers on a company’s financial statements?
5. How can you tell if a company has too much debt? Explain why a company may seek to increase or decrease its level of debt.
6. How can the risk that a company takes be measured? How does risk affect the company’s financial strength in any given period?