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1. BUS 650 Week 2 DQ 2 Managing Earnings
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Companies often try to keep accounting earnings
growing at a relatively steady pace in an effort to
avoid large swings in earnings from period to
period. They also try to manage earnings targets.
Reflect on these practices and discuss the
following in your discussion post. Are these
practices ethical?
What are two tactics that a financial manager can
use to manage earnings?

2. What are the implications for cash flow and
shareholder wealth?
Using the financial balance sheet as displayed in
the text, provide an example of how purchasing an
asset or issuing stocks or bonds could potentially
impact earnings targets.
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