Eastman Kodak 5 – Financial Decision Making
DiscussionsTo participate in the following
discussions, go to this week’s Discussion link in the left
navigation.The Quality of Financial InformationDescribe the
quality issues related to reporting revenue, and explain the importance to
understanding various inventory valuation methods in determining the quality of
reported profits. Respond to at least two of your fellow students’
postings.Conflicts with GAAP Even though firms follow the
accounting rules (GAAP) when presenting their financial statements it is still
possible for conflicts of interest to exist between what management wants
investors and creditors to see and the economic reality of transactions. Write
a short essay (roughly 200 words) explaining how this can occur. In your essay
explain how there are still conflicts of interest, even when firms are following
the generally accepted accounting procedures (GAAP), between what management
wants investors and creditors to see and the economic reality of
transactions. Respond to at least two of your fellow students’ postings.
AssignmentTo complete the following
assignment, go to this week’s Assignment link in the left navigation.
Eastman Kodak 5Each chapter in the textbook
contains a continuation of this problem. The objective is to learn how to do a
comprehensive financial statement analysis in steps as you learn the content of
each chapter. Keep this in mind as you complete each week’s written
assignment. Using the Eastman Kodak 2007 Annual Report and Form10-K, answer the following questions
in a 2-page analysis:Using the checklist and the quality of financial reporting sections of
Chapter 5, discuss the quality of Eastman Kodak’s annual report and Form 10-K.
Adjust the 2007 net earnings figure for Eastman Kodak, for purposes of
comparing this amount to future earnings.* *Note: The CPI for 2007 is 207.3 and for 2006 it is 201.6.