Module I· Earnings Quality & Red FlagsIntermediate
Question
What working-capital manipulation patterns occur at quarter-end or year-end?
Answer
Working-capital manipulation often appears as period-end sales pull-forward, payable stretching, factoring, or inventory movements that reverse after closing.
Deep diveShow more details
Ask for post-balance-sheet cash receipts and payments. They reveal whether period-end working capital was real.