• Refer to the following article: Rapoport, Michael, "Business News: Kraft Heinz Tailored Results in Spotlight --- At issue is company practice of excluding many big expenses from operating profit," Wall Street Journal, 06 Mar 2019: B.5. Drawing from what you have learned in this course as well as any other sources, provide a well labeled and clearly articulated answer -- with explanation -- to the following:
  • • What is the difference between operating earnings and Ebitda?
    • Explain how a company like Kraft Heinz can report adjusted operating earnings totaling more than $24 billion but have cash flow of only about $6 billion?
    • Why are expenditures like interest payments on debt and the costs of merging two companies usually excluded as operating expenses? Under what facts and circumstances would these expenditures be allocated, at least in part, to operating expenses?
  • Where appropriate, properly cite any readings, specific pages from any secondary source, or other sources that contributed to or that support your explanation.