You may know of Kendall Square ,Cambridge, as the home of many leading life sciences companies. It was not always that way. In the 1990s it was home to many computer hardware companies, including several in the emerging market of supercomputers. Kendall Square Research (KSR) was one of the leading companies in this field. Unfortunately they ran into trouble due to accounting irregularities relating primarily to revenue recognition. A few years after the demise of the company a Harvard Business School case was written and my understanding is that it remains to this day a classic case at the school.
Read Kendall Square Research Corporation (A) (in ClassPac) and:
- Analyze the financial statements in order to identify red flags that would indicate problems with their accounting. Are there any relationships , ratios, trends or accounts that point to weaknesses or strengths that will influence future profitability?
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