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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: TREND1 who wrote (94142)	7/13/2002 5:47:47 PM
From: Jack T. Pearson	Respond to of 99280

A company can make earnings look like "what ever they want" It is relatively easy to shift small percentages in sales and profits by adjusting payments or deliveries by a few days. I've seen it done many times. Other techniques that provide larger percentage changes are to delay capital expenditures, reduce R&D budgets, delay maintenance, trade long term debt for short term debt, etc. Out-sourcing can also shift, and sometimes reduce, costs. Many of these techniques provide short term improvement in financial reports at the expense of long term company health or growth.