Posts Categorized: All Articles

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 »

Timeshare Worries in a Recession

Posted by & filed under All Articles, Financial Reporting and Analysis, Financial Statement Analysis, Intermediate Accounting.

Marriott International, the well-known hotelier, saw operating losses in its third quarter of 2009, as a result of its venture to move into financing time-shares during a slowing real estate market. In addition, the sluggish economy has not helped its primary business segment that caters to cash-based lodging for business and leisure travelers. As a… Read more »

Debt Exchange

Posted by & filed under All Articles, Intermediate Accounting.

In an 11th-hour effort to avoid filing for Chapter 11 bankruptcy, commercial lender CIT Group Inc. offered its bondholders a debt exchange. The exchange offer expired on October 29, 2009. According to this exchange plan, CIT bondholders of older notes would receive between $700 and $900 in new debt plus between 0.41 and 3.26 of… Read more »