Cisco Systems
Free cash flow is often considered a more reliable measure of a company's net income than reported earnings.
Read the section "Free Cash Flow at Cisco Systems" from your textbook (p. 123) and respond to the following:
• What are some possible ways that corporate accountants might be able to change their earnings to portray a more favorable earnings statement?
• What type of indicators might an investor (or reader of financial statements) look for that would indicate that the free cash flow of a company might be in jeopardy?
Post your primary response. Read any postings already provided by your instructor or fellow students. See the SBT Discussion Rubric for how you will be evaluated for this activity. Remember to read the feedback to your own major postings and reply to it throughout the module.
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