Posts Tagged: Free Cash Flow

Trouble in Movie Theater Land

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Financial Accounting, Intermediate Accounting, Managerial Accounting, Uncategorized.

Many on Wall Street are betting against AMC Entertainment. Its stock has plunged 75%, erasing nearly $3 billion in market cap. Questions: What factors are hurting AMC sales numbers? Over what period has AMC the drop in sales? What has happened to the theater chain’s free cash flow and debt? Source: Sullivan, C. and A…. Read more »

HALTED!

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According to the Washington Post, Boeing will halt production of its new 737 MAX commercial jetliner in January 2020. Questions: How long will the production halt last? How many employees will be laid off? How much is it estimated that the entire U.S. gross domestic product for a period this year has been impacted by… Read more »

The Fate of GE Dividends

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General Electric’s 119-year-old dividend is a source of pride inside this once-dependable company. Questions: 1. Why is a dividend cut expected? 2. What is the estimate of how much might be cut? 3. Even with the cut, the dividend is expected to do what to GE’s financials? Source: Egan, M. (2018). GE’s 119-year-old dividend is… Read more »

Healthcare Turf

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Walgreens (WAG), the country’s largest drugstore chain, is poised to expand even further into healthcare. At Walgreens’ annual shareholder conference, company officials talked about a new educational program for patients with chronic and complex diseases, and even mentioned the possibility of a Walgreens role in the emerging accountable care organizations. Until recently, most retail clinics… Read more »

Searching for Free Cash Flow

Posted by & filed under All Articles, Intermediate Accounting.

The South Africa-based company, Harmony Gold, is having problems securing ongoing funding after using up more than $1 billion U.S. Its latest quarterly report shows that the company is grappling to produce free cash flow. QUESTIONS: What is free cash flow and why is this a worry for the company? With respect to free cash… Read more »