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Homework answers / question archive / When fleetwood enterprises Inc
When fleetwood enterprises Inc., a large producer of recreational vehicles and manufactured housing, warned that it might not be able to generate enough cash to satisfy debt requirements and could be in default of a loan agreement, its cashflow, defined in financial press as EBITDA (earnings before interest, taxes, depreciation, and amortization), was a negative $2.7 million. The company would have had to generate $17.7 million in the next accounting period to comply with the loan terms. What section of the statement of cash flows does EBITDA most closely relate, is EBITDA a good approximation for this section of the statement of cash flows, and explain your answer which should include the major differences between EBITDA and the section of the statement of cash flows that you choose?
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