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Non-Tech : Cendant Corporation (NYSE:CD) -- Ignore unavailable to you. Want to Upgrade?

To: Razz who wrote (1108)	7/17/1998 3:25:00 PM
From: Frank	Read Replies (1) \| Respond to of 3627

Ronald, Actually, Book value is $5.74 (not adjusted for new figures). Most of the errors/irregularities will probably have very little balance sheet impacts. A lot of people have misconceptions about cash flow and revenue figures. Because the errors are essentially Revenue related it follows that most of the adjustments will be on the Accounts Receivables. On the reversal of merger related charges, I don't know what line item will be directly effected, although, I suspect Goodwill will be reduced by $200 million (which does not have a cash flow effect). I don't know what's going to happen on the liability side, but it should probably be related at a non current liabilty. Given all the hype over prior revenue figures, I just thought it might be a good idea to consider that cash flow, other than the membership pieces, probably won't be effected all that much. The intersting thing about offering a membership for free for 3 mo's is that people have a tendancy to forget they've even got a membership, and continue to pay indefinately. This is just a personal observation from my own experience with magazine subscriptions. Just a thought anyway.