Online S Bottom Line
Accounting is terribly important to AOL. The better its numbers look, the more Wall Street loves it and the easier AOL can sell new shares to raise cash to pay its bills. By my analysis, the company is running a cash deficit of about $75 million a year, covering up the shortfall with perfectly legal accounting techniques and covering its cash deficit with money from stock sales. If AOL can’t sell stock, it’s got big trouble....