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To: ms.smartest.person who wrote (52300)5/4/2001 12:58:45 AM
From: ms.smartest.person  Read Replies (1) | Respond to of 77400
 
Table: Red Flags


Companies may be up to hanky-panky when...

-- Profits grow faster than cash flow

-- Unpaid customer bills outpace sales

-- Sales slow while inventories pile up faster

-- Sales are booked before payments are received

-- Reserves against bad debts are cut sharply

-- Gross margins increase or decrease dramatically

-- Ways of calculating revenue and expenses change

-- Auditors, lawyers, or key execs change

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