You are preparing to add another supplier as a vendor for your company. As you look into the financials of Company ABC, you notice that they suddenly acquired and are holding substantial cash to make their company look more liquid. This makes it appear that they are able to make loan payments, hand out dividends, or use their substantial cash flow to invest in expanding the business. The company has also tweaked its sales projections, stating them as significantly higher than they probably are in reality. It appears that they are trying to drive their stock price higher and make potential investors more interested. What does it seem that this company is doing with its financials? And would you take this company on as a vendor? Window dressing. Yes, they seem to be financially sound. Window dressing. No, we might not be able to trust this company’s financial abilities. Assumptions and estimates. Yes, they seem to be financially sound. Assumptions and estimates. No, we might not be able to trust this company’s financial abilities.