APPLIED PRACTICE · INTERMEDIATE & ADVANCED

Put the basics to work.

Compare evidence, calculate costs and explain trade-offs.

FICTIONAL DATA · No recommendations or simulated returns. Reflections stay in screen memory only. Copy important ideas into Research before leaving. No AI grades your writing.

CASE 1 OF 6

Stock research: follow the cash

FICTIONAL CASE · Northstar reports revenue up 12%, operating cash flow down 8%, and receivables up 25%. Debt also rises. No share-price history or recommendation is provided.

What is the strongest next research step?

Buy because reported revenue increased.Examine receivables, collection timing and working-capital changes across periods.Conclude that management committed fraud.

What evidence would most directly challenge a healthy-growth thesis?

The company gets more mentions online.The share price rises for one day.Customers keep taking longer to pay while receivables outpace sales over several periods.

What remains unknown?

Whether the cash-flow change is temporary, and what funding obligations are coming due.Nothing: three growth percentages are sufficient.The exact future share price is now certain.

Explain your reasoning0/1200

Choose three answers and write at least 40 characters.

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