Purchase Solution

Predicting Financial Crisis From KB HOME's (NYS: KBH) Financial Statements

Not what you're looking for?

Ask Custom Question

Looking at the attached graphs and financials, please discuss how you could have used accounting information to predict the Financial Crisis of 2008. Focus your discussion on KB Home's inventory, earnings, cash flow and stock price.

Provide a short paragraph explaining how, just by looking at the attached worksheet and stock prices, you could have predicted the 2008 crisis.

Purchase this Solution

Solution Summary

The solution explains how the Financial Crisis of 2008 could have been predicted by looking at KB Home's financial statements.

Solution Preview

KB Home's balance sheet shows that the company's inventories almost double from 2002 to 2006. The inventories balance steadily increased within this period. In 2007, the company's cash balance ballooned to an amount almost equal to the cash balances from 2002 to 2006 combined. However, the company's cash flows didn't fluctuate as much as ...

Purchase this Solution

Free BrainMass Quizzes
Learning Lean

This quiz will help you understand the basic concepts of Lean.

Income Streams

In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.

Accounting: Statement of Cash flows

This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.


This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.

Writing Business Plans

This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.