Did you make money in the stock market last year? Do you think you beat some billionaires? Well, if you earned double-digit returns in 2012, you would have beaten a few. And, if you kept pace with the S&P 500, you would have clobbered most! We are talking percentage here, not dollars. How could this be? Shouldn’t billionaires do better than the average Joe? This research paper reveals the secret sauce!
The release of the Financial Accounting Standards Board’s exposure draft on “Statement of Cash Flows” has made cash-watching an even more popular sport. Now the financial analyst can choose among operating, investment, and financial cash flows, as well as the traditional accrual-based and funds-based liquidity ratios. With all these so-called liquidity measures, the question is, which should the analyst use? In this research paper, we cover the primary rules for detecting bankruptcy.
