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how do you respond to this in 100 words? In Chapter 17 we cover financial statement analysis. The chapter covers how to compute and perform

image text in transcribedhow do you respond to this in 100 words?
In Chapter 17 we cover financial statement analysis. The chapter covers how to compute and perform the standard financial statement analysis But I want you to dig a little deeper. For your discussion topic, read the following and respond to the questions Beta Watch Inc. was a relatively new tech company led by aggressive founder John Harrison. His strategy relied not so much on producing new products as using new equity capital to buy up other companies. To koop attracting investors, Harrison had to show year to year revenue growth When his normal revenue streams stalled, he resorted to the tried and true "channel stuffing' technique. First, he improperly recorded shipments to his distributors as sales revenue these shipments for exceeded the market demand for his products. Then he offered the distributors large payments to hold the excess inventory instead of returning it for a refund. Those payments were disguised as sales promotion expenses. He was able to show a considerable growth in revenues for two years running until one savvy investor group started asking questions. That led to a complaint hled with the SEC. The company is now in bankruptcy, and several criminal cases are pending What financial statement analysis and/or ratio may have tipped off the investor group that something was wrong? In what way would the investor group been harmed? If Harrison had attracted enough equity capital do you think he would have been able to conceal the scheme? Remember all original posts need to be between 150-500 words. In order to cam all 10 points you must comment on another student's post substantively

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