Question: Liquidity, Debt, and Equity
For this discussion, assume the role of an investor. How would you know whether the company you are considering to invest in has repurchased any of its own stock and/or issued stock dividends during the current period? Why is this important, and would you find any of this information on the statement of cash flows? What level of liquidity and solvency would you be looking for? Why? In addition, include a summary of a current Wall Street Journal article that discusses an organization that recently repurchased its stock or issued a stock dividend. Tip: Consider the footnotes in your reply.
Resources (see attachment)
• Discussion Participation Scoring Guide.
• The Wall Street Journal.
In your Financial Accounting textbook, read:
• Chapter 9, "Reporting and Interpreting Liabilities," pages 450-479.
• Chapter 11, "Reporting and Interpreting Owners' Equity," pages 544-569.
• Chapter 13, "Analyzing Financial Statements," pages 642-670.