Predicting a Firms FInancial Distress: The Merrill Lynch Co. Statement of Cash Flows Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

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On the night of September 14, 2008, just hours before Lehman Brothers folded, Merrill Lynch announced a loss: it was acquired by Bank of America (BofA). Not confident in their ability to continue as a separate legal entity, Merrill Lynch knowingly over 90 years of independence. Before its purchase BofA, Merrill Lynch was the largest and most widely recognized broker in the world. She dominated retail brokerage with an army of 16,000 brokers worldwide. In early 2008, Merrill Lynch, Goldman Sachs, Morgan Stanley, Lehman Brothers and Bear Stearns were the five largest independent investment banks, with a combined 549 years of shared history: the period of six months, they will all be gone. Some observers wondered whether early signs of financial difficulties that the investment firm has experienced in 2008 can be seen in the financial statements published in the years prior to the acquisition of this giant. It was also important to assess whether the performance of the company from the corners, other than operating results, which are commonly used by financial analysts? In particular, if the value in the evaluation of the company, carefully checking the origin and use of its assets for the years 2005, 2006 and 2007. Such research should focus on the statement of cash flows, including the need to: assess the cash position at the end of the year, analyze cash flows provided by (used) by operating activities, analyze cash flows provided by (used in) investing activities, and analyze Cash flows provided by (used in) financing activities. "Hide
by Daniel Morin, Julien Lemaux, Dominique Hamel Source: Richard Ivey School of Business Foundation 14 pages. Publication Date: May 30, 2012. Prod. #: W12114-PDF-ENG