John Wu Is Considering Investing in Comtez Inc

question 89

Essay

John Wu is considering investing in Comtez Inc.Comtez is a software design company that is currently heavily involved in the development of a variety of programs to facilitate the implementation of e-commerce for small- to medium-sized businesses.When reviewing Comtez's financial statements, John noticed that the company seemed to have an unusually high cash balance.He is a little concerned that management may be manipulating cash flows, and if so, what should he look for to help him determine if management is trying to manipulate the cash balance?
Required:
Write a brief memo to John addressing his concerns.

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Definitions:

Evaluate The Source

The act of critically assessing the origin of information to determine its credibility, reliability, and relevance.

Negative Information

Details or facts that may be perceived as unfavorable or disappointing.

Unhappy Customers

Individuals who are dissatisfied with a product or service provided by a business, leading to potential complaints or loss of business.

Larger Audience

Refers to reaching a broader group of people or a wider demographic through a particular medium or message.