Sunbeam Case

1a.  AdjustSunbeam's1997Earningbefore interest andtaxesforone-time eventsandapparent(e.g.,doubtful accounts,depreciationexpense,andetc.)changesinaccounting policy. Becarefultoadjust forthings donein1996thathada carry-over effecton1997.Youmaywanttocomputesomecomparative ratiostofacilitateyouranalysis.Besuretoprovidethedetails ofandclearlylabelanycomputations.

1b.  Utilizingyouradjusted numbersfrom(above)re-compute Sunbeam’soperatingcashflowsfor1997 (i.e.,computeanewcashflowsamount basedonyouradjustmentsto the     original  data).  Clearly  label  the  components  of  your computations.

Summarizeyourfindingsin1)a.and 1)b.(above),payingparticular attentiontoanyevidenceoffraud (becarefulnottolet20-20hindsight–i.e.,informationthatyou areawareof,butisnotincludedinthiscase–influence your conclusions).

2 YoureadaboutinyourtextandassessedintheStrategicAnalysisportionof yourproject,thefactorsthatMichaelPorteridentifiesasinfluencingand directingcompetitivestrategy.

Required:

a)Identifyeachofthosespecificfactors

b)Providespecificexamplesofaccounting informationthatmightbeusefulforassessingeachfactor.Besureto explain(briefly)howeachexamplemightbeused