Use financial ratios to identify a liquidity problem for a company. Demonstrate the cash flow effects of operating losses on a company's financial statements. Analyze cash flow statements to identify the major determinants of ending cash balance. Discuss funding alternatives consistent with creating an acceptable capital structure. Discuss the likely signaling effect of adding more debt or equity for a company in financial distress, whose debt rating is slipping and whose stock sales are at depressed levels. Highlight the leadership challenges of a turnaround situation and the governance issues faced by the board acting on behalf of shareholders during a turnaround.