The March 1995 issue of Management Review includes an article by Barbara Ettorre entitled “How Motorola Closes Its Books in Two Days.”

Instructions Read the article and answer the following questions:

(a) How often does Motorola close its books? How long did the process used to take?

(b) What was the major change Motorola initiated to shorten the closing process? _

(c) What incentive does Motorola offer to ensure accurate and timely information?

(d) In a given year, how many journal entry lines does Motorola process?

(e) Provide an example of an external force that prevents Motorola from closing faster than a day and a half.

(£) According to Motorola's corporate vice-president and controller, how do external users of financial statements perceive companies that release information early?
INTERPRETING FINANCIAL STATEMENTS