How would accounting information (using KB Home's inventory, earnings, cash flow, and stock price) have been used to predict the financial crisis of 2008.

 

Year End CURRENT ASSETS ~Cash & ST Investments ~Accouts Receivable ~ Inventories ~Other Current Assets Current Assets (1+4) CURRENT LIABILITIES ~ST Debt & Curr. Portion of LT Debt ~Accounts Payable ~Income Tax Payable ~ Other Current Liabilities Current Liabilities (6+() Current Net Opearting Assets (5-1)-(10-6-8) NET INCOME Accrual Component of NI (A in 11) Implied Cash Component of NI (12-13) Stock Price H Line UAWN H 5 1000 og 6 7 8 9 10 11 12 13 14 2002 $330.0 982.5 2,173.5 0.0 3,486.0 516.9 521.3 0.0 466.9 1,505.1 2,167.8 314.4 22.35 2003 $138.1 642.1 2,883.5 0.0 3,663.7 329.6 554.4 0.0 606.4 1,490.4 2,364.8 370.8 197.0 173.8 34.44 2004 $234.2 662.7 4,143.3 0.0 5,040.2 86.0 749.1 0.0 855.9 1,691.0 3,201.0 480.9 836.2 -355.3 43.95 2005 $154.0 584.3 6,128.3 0.0 6,866.6 130.3 892.7 0.0 1,393.2 2,416.2 4,426.7 842.4 1,225.7 -383.3 69.77 2006 $654.6 662.4 6,454.8 0.0 7,771.8 503.6 1,071.3 0.0 1,706.3 3,281.2 4,339.6 482.4 -87.1 569.5 51.69 2007 $1,343.7 298.4 3,312.4 0.0 4,954.5 221.0 699.9 0.0 993.6 1,914.5 1,917.3 -1414.8 -2,422.3 1,007.5 20.89 2008 $1,256.9 359.0 2,106.7 0.0 3,722.6 296.4 541.3 0.0 730.9 1,568.6 1,193.5 -976.1 -723.8 -252.3 11.63 2009 $1,292.3 339.3 1,501.4 0.0 3,133.0 18.5 341.0 12.5 554.9 926.9 944.8 -101.8 -248.7 146.9 13.55 Year End CURRENT ASSETS ~Cash & ST Investments ~Accouts Receivable ~ Inventories ~Other Current Assets Current Assets (1+4) CURRENT LIABILITIES ~ST Debt & Curr. Portion of LT Debt ~Accounts Payable ~Income Tax Payable ~ Other Current Liabilities Current Liabilities (6+() Current Net Opearting Assets (5-1)-(10-6-8) NET INCOME Accrual Component of NI (A in 11) Implied Cash Component of NI (12-13) Stock Price H Line UAWN H 5 1000 og 6 7 8 9 10 11 12 13 14 2002 $330.0 982.5 2,173.5 0.0 3,486.0 516.9 521.3 0.0 466.9 1,505.1 2,167.8 314.4 22.35 2003 $138.1 642.1 2,883.5 0.0 3,663.7 329.6 554.4 0.0 606.4 1,490.4 2,364.8 370.8 197.0 173.8 34.44 2004 $234.2 662.7 4,143.3 0.0 5,040.2 86.0 749.1 0.0 855.9 1,691.0 3,201.0 480.9 836.2 -355.3 43.95 2005 $154.0 584.3 6,128.3 0.0 6,866.6 130.3 892.7 0.0 1,393.2 2,416.2 4,426.7 842.4 1,225.7 -383.3 69.77 2006 $654.6 662.4 6,454.8 0.0 7,771.8 503.6 1,071.3 0.0 1,706.3 3,281.2 4,339.6 482.4 -87.1 569.5 51.69 2007 $1,343.7 298.4 3,312.4 0.0 4,954.5 221.0 699.9 0.0 993.6 1,914.5 1,917.3 -1414.8 -2,422.3 1,007.5 20.89 2008 $1,256.9 359.0 2,106.7 0.0 3,722.6 296.4 541.3 0.0 730.9 1,568.6 1,193.5 -976.1 -723.8 -252.3 11.63 2009 $1,292.3 339.3 1,501.4 0.0 3,133.0 18.5 341.0 12.5 554.9 926.9 944.8 -101.8 -248.7 146.9 13.55 Year End CURRENT ASSETS ~Cash & ST Investments ~Accouts Receivable ~ Inventories ~Other Current Assets Current Assets (1+4) CURRENT LIABILITIES ~ST Debt & Curr. Portion of LT Debt ~Accounts Payable ~Income Tax Payable ~ Other Current Liabilities Current Liabilities (6+() Current Net Opearting Assets (5-1)-(10-6-8) NET INCOME Accrual Component of NI (A in 11) Implied Cash Component of NI (12-13) Stock Price H Line UAWN H 5 1000 og 6 7 8 9 10 11 12 13 14 2002 $330.0 982.5 2,173.5 0.0 3,486.0 516.9 521.3 0.0 466.9 1,505.1 2,167.8 314.4 22.35 2003 $138.1 642.1 2,883.5 0.0 3,663.7 329.6 554.4 0.0 606.4 1,490.4 2,364.8 370.8 197.0 173.8 34.44 2004 $234.2 662.7 4,143.3 0.0 5,040.2 86.0 749.1 0.0 855.9 1,691.0 3,201.0 480.9 836.2 -355.3 43.95 2005 $154.0 584.3 6,128.3 0.0 6,866.6 130.3 892.7 0.0 1,393.2 2,416.2 4,426.7 842.4 1,225.7 -383.3 69.77 2006 $654.6 662.4 6,454.8 0.0 7,771.8 503.6 1,071.3 0.0 1,706.3 3,281.2 4,339.6 482.4 -87.1 569.5 51.69 2007 $1,343.7 298.4 3,312.4 0.0 4,954.5 221.0 699.9 0.0 993.6 1,914.5 1,917.3 -1414.8 -2,422.3 1,007.5 20.89 2008 $1,256.9 359.0 2,106.7 0.0 3,722.6 296.4 541.3 0.0 730.9 1,568.6 1,193.5 -976.1 -723.8 -252.3 11.63 2009 $1,292.3 339.3 1,501.4 0.0 3,133.0 18.5 341.0 12.5 554.9 926.9 944.8 -101.8 -248.7 146.9 13.55