Now showing items 1-20 of 22

    • Accounting Deja Vu: Have We Seen These Earnings Before? 

      Mulford, Charles W.; Ely, Michael L.; Hudson, Katie; Maloney, Kerianne; Moses, Andrew (Georgia Institute of Technology, 2003-04)
      A study released by the GAO in October 2002, Financial Statements Restatements: Trends, Market Impact, Regulatory Responses and Remaining Challenges, reported that the number of restatements increased 145% from 1997 to ...
    • Adjusted Free Cash Flow and Capital Expenditures of the S&P 100: What Is the Source of Growth in Adjusted Free Cash Flow? 

      Mulford, Charles W.; Ely, Michael L.; Martins, Mario; Patel, Amit (Georgia Institute of Technology, 2005-03)
      Noteworthy growth in free cash flow has been well reported over the past few years as company management, financial analysts, and investors increasingly focus on cash flow to validate reported earnings. Unfortunately, the ...
    • Adjusted Free Cash Flow and the Dividend Payout of the S&P 100 

      Mulford, Charles W.; Ely, Michael L.; Maloney, Kerianne; Martins, Mario; Quiroz, Raul (Georgia Institute of Technology, 2003-12)
      Free Cash Dividend Payout, calculated by dividing common dividends by adjusted free cash flow, provides useful insight into the relationship between cash flow and dividends and a company’s ability to pay them in the future. ...
    • Calculating Sustainable Cash Flow: A Study of the S&P 100 Using 2002 Data 

      Mulford, Charles W.; Ely, Michael L. (Georgia Institute of Technology, 2003-10)
      Operating cash flow in 2000, 2001, and 2002 for the S&P 100 was adjusted to remove items that may provide misleading signals of operating performance. Nine adjustments were made, separated into three categories - (1) where ...
    • Calculating Sustainable Cash Flow: A Study of the S&P 100 Using 2003 Data 

      Mulford, Charles W.; Ely, Michael L.; Martins, Mario; Patel, Amit (Georgia Institute of Technology, 2004-10-26)
      Operating cash flow in 2000, 2001, 2002 and 2003 for the S&P 100 was adjusted to remove items that may provide misleading signals of operating performance. Ten adjustments were made, separated into three categories - (1) ...
    • Cash Flow Reporting in the Presence of Overdrafts 

      Mulford, Charles W.; Ely, Michael L.; Hudson, Katie; Maloney, Kerianne; Moses, Andrew (Georgia Institute of Technology, 2003-01)
      Numerous companies maintain cash overdraft balances. These seemingly innocuous accounts can have material effects on reported amounts of cash and operating cash flow. In this report we survey reporting practices for ...
    • Cash Flow Reporting Practices for Interest Paid on Zero Coupon Bonds 

      Mulford, Charles W.; Ely, Michael L.; Patel, Amit; Martins, Mario (Georgia Institute of Technology, 2005-03)
      Debt financing, such as bonds and notes payable, comes with an interest cost that is incurred by the borrower and paid to the lender providing compensation for the use of funds. When zero coupon bonds are issued, interest ...
    • Cash Is Truth, Or Is It? Adjusting Operating Cash Flow to Obtain an Improved Measure of Corporate Performance 

      Mulford, Charles W.; Ely, Michael L.; Hudson, Katie; Maloney, Kerianne; Moses, Andrew (Georgia Institute of Technology, 2002-12)
      Operating cash flow in 2000 and 2001 for the S&P 100 was adjusted to remove items that may provide misleading signals of operating performance. Nine adjustments were made, separated into three categories - (1) where ...
    • Cash-Flow Reporting Practices for Customer-Related Notes Receivable 

      Mulford, Charles W.; Ely, Michael L.; Maloney, Kerianne; Quiroz, Raul; Martins, Mario (Georgia Institute of Technology, 2004-04)
      A sale made on open account boosts net income but does not provide operating cash flow until the related amount due from the customer has been collected. Accordingly, in computing operating cash flow, subtractions must be ...
    • Cash-Flow Reporting Practices for Customer-Related Notes Receivable: An Update 

      Mulford, Charles W.; Ely, Michael L.; Patel, Amit; Martins, Mario (Georgia Institute of Technology, 2005-02)
      In our April 2004 report, "Cash-Flow Reporting Practices for Customer-Related Notes Receivable," we expressed the view that firms who reported as investing cash flow changes in customer-related notes receivable, including ...
    • Cash-Flow Reporting Practices for Insurance Proceeds Related to PP&E 

      Mulford, Charles W.; Ely, Michael L.; Patel, Amit; Martins, Mario (Georgia Institute of Technology, 2005-06)
      According to SFAS No. 95, Statement of Cash Flows, insurance settlement proceeds received that are directly related to investing activities such as the destruction of a building or damage sustained by equipment are to be ...
    • Cash-Flow Reporting Practices for Sale and Leaseback Transactions 

      Mulford, Charles W.; Ely, Michael L.; Patel, Amit; Martins, Mario (Georgia Institute of Technology, 2004-11)
      In a sale and leaseback transaction an asset is sold and simultaneously leased back. As a result, the seller/lessee relinquishes ownership but not possession of the asset in question, which can be most any long-lived asset, ...
    • Customer-Related Notes Receivable and Reclassified Cash Flow Provided by Operating Activities 

      Mulford, Charles W.; Ely, Michael L.; Patel, Amit; Martins, Mario (Georgia Institute of Technology, 2005-04)
      In February, 2005, the Securities and Exchange Commission directed the Chief Financial Officers of various companies to begin reporting customer-related notes receivable, including sales-type lease receivables, as operating ...
    • Excess Cash Margin and the S&P 100 

      Mulford, Charles W.; Ely, Michael L.; Maloney, Kerianne; Martins, Mario; Quiroz, Raul (Georgia Institute of Technology, 2003-11)
      Excess Cash Margin, ECM, calculated by dividing by revenue the difference between adjusted operating cash flow and adjusted operating earnings, provides useful insight into the relationship between cash flow and earnings. ...
    • Free Cash Flow and Compensation: A Fashionable Fad or Something More? 

      Mulford, Charles W.; Ely, Michael L.; Maloney, Kerianne; Quiroz, Raul; Martins, Mario (Georgia Institute of Technology, 2004-06)
      As instances of alleged cases of accounting fraud and earnings management have increased in recent years there has been a "discovery" of sorts of free cash flow by investors, analysts and the financial press. Such a ...
    • The Inclusion of Short-term Investments in Operating Cash Flow 

      Mulford, Charles W.; Ely, Michael L.; Patel, Amit; Quiroz, Raul; Martins, Mario (Georgia Institute of Technology, 2003-09)
      Companies use short-term investments as a vehicle to park surplus cash. When such investments are classified as trading securities, cash used in their purchase and proceeds provided from their sale are included in operating ...
    • A Look at Cash Flow and Earnings Growth for the S&P 100 

      Mulford, Charles W.; Ely, Michael L.; Martins, Mario; Patel, Amit (Georgia Institute of Technology, 2004-12)
      Excess Cash Margin, ECM, calculated by dividing by revenue the difference between adjusted operating cash flow and adjusted operating earnings, provides useful insight into the relationship between cash flow and earnings. ...
    • Non-Cash Investing and Financing Activities and Free Cash Flow 

      Mulford, Charles W.; Ely, Michael L.; Patel, Amit; Martins, Mario (Georgia Institute of Technology, 2004-12)
      Items of property, plant and equipment are often acquired through non-cash investing and financing activities. In these transactions, equipment-purchase financing is provided at the time of purchase. While such transactions ...
    • Off Balance Sheet Entities: A Preliminary Look at the Effects of Interpretation 46 

      Mulford, Charles W.; Ely, Michael L.; Hudson, Katie; Maloney, Kerianne; Moses, Andrew (Georgia Institute of Technology, 2003-03)
      On January 17, 2003, the Financial Accounting Standards Board (FASB) issued Interpretation No. 46 – Consolidation of Variable Interest Entities. Given companies' widespread use of VIEs (formerly SPEs) to finance their ...
    • A Re-examination of Cash Flow Reporting in the Presence of Overdrafts 

      Mulford, Charles W.; Ely, Michael L.; Hudson, Katie; Maloney, Kerianne; Moses, Andrew (Georgia Institute of Technology, 2003-06)
      Numerous companies maintain cash overdraft balances. These seemingly innocuous accounts can have material effects on reported amounts of cash and operating cash flow. In this report, updated from the original published in ...