Question
Selected financial statement information for 2018, 2019, and 2023 for EndRun Corporation is presented below (amounts in millions of dollars): For 2019 and 2020, compute
Selected financial statement information for 2018, 2019, and 2023 for EndRun Corporation is presented below (amounts in millions of dollars):
For 2019 and 2020, compute the following amounts relative to Beneishs eight-factor earnings manipulation model: a. 2019 DSRI b. 2019 GMI c. 2019 AQI d. 2019 SGI e. 2019 DEPI f. 2019 SAI g. 2019 LVGI h. 2019 TATA i. 2019 y j. 2019 Earnings manipulation probability
Round all factor values and the model output variable, y, to three decimal places. The earnings manipulation probabilities are percentages that should be rounded to one decimal place.
\begin{tabular}{|l|r|r|r|} \hline & 2020 & 2019 & 2018 \\ \hline Accounts receivable & 10508 & 3905 & 2985 \\ \hline Current assets & 30945 & 7438 & 5743 \\ \hline Property, plant, and equipment (net) & 11284 & 10744 & 10493 \\ \hline Total assets & 68787 & 31289 & 26213 \\ \hline Current liabilities & 29417 & 6595 & 6048 \\ \hline Long-term debt & 8776 & 7223 & 7223 \\ \hline Sales & 101573 & 47860 & 33906 \\ \hline Cost of goods sold & 92207 & 32090 & 27772 \\ \hline Selling and administrative expenses & 3931 & 3315 & 2582 \\ \hline Income from continuing operations & 946 & 1063 & 739 \\ \hline Cash flow from operations & 4837 & 1127 & 1863 \\ \hline Depreciation expense & 518 & 550 & 550 \\ \hline \end{tabular}Step by Step Solution
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