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Predicting a Firms FInancial Distress: The Merrill Lynch Co. Statement of Cash Flows Case Solution & Answer

During the night of September 14, 2008, just hours before Lehman Brothers folded, Merrill Lynch said the defeat was acquired by Bank of America (BofA). Not sure of its ability to continue as an independent entity, Merrill Lynch deliberately ended 90 years of independence. Before its acquisition by Bank of America Merrill Lynch was the largest and most recognized retailers in the world. She dominated retail brokerage, with his army of 16,000 runners from around the world. In early 2008, Merrill Lynch, Goldman Sachs, Morgan Stanley, Lehman Brothers and Bear Stearns were the five largest independent investment banks, with a combined total of 549 years of history, in the space of six months, they would all be gone. Some observers wonder if the first signs of financial problems that the investment firm has experienced in 2008 could be seen in the published in the years prior to the purchase of this giant financial statements. In addition, it is useful to evaluate the performance of the company from an angle other than the results of operations, which is commonly used by financial analysts? Specifically it would important to evaluate the performance of the company by examining the origin and use of your cash for the years 2005, 2006 and 2007. Such survey required emphasis on the state of cash flows, including the need to: assess the liquidity position at year end, an analysis of cash flows from (used in) operating activities to analyze the cash flow generated (used) by investing activities and analysis of the cash flows from (used in) financing activities.
by
Danielle Morin,
Julien Lemaux
Dominique Hamel
Source: Ivey Publishing
14 pages.
May 30 2012: release date. Prod #: W12114-PDF-ENG
Prediction of financial distress of a company’s cash flow solution Merrill Lynch Co. Case Statement

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