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Using the Earnings Quality Model, Answer the following: Q 8 : Is the proportion of accruals to earnings high enough to warrant investigation? Q 9
Using the Earnings Quality Model, Answer the following:
Q: Is the proportion of accruals to earnings high enough to warrant investigation?
Q: Do the intensity ratios Net Operating Asset and Intangibles taken together, indicate a possible red flag for poor earnings quality?
Q: Are there any trends in the operating expense ratios Advertising to Sales, SCi&A to Sales, R&D to Sales that would indicate potential changes to future earnings expectations?
Q: Looking at Gross Profit Margin, the Unusual Expense Intensity, and the Asset Replacement Ratio, do you see any indication of under or overstated expenses?
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